Pharmaceutical firms putting up poor show in e-business race, says study

6 June 2001

Almost one in three pharmaceutical companies are lagging behind in thedevelopment of e-business initiatives, according to a report published by Cap Gemini Ernst & Young and INSEAD. The firms say that they conducted "a series of broad-ranging discussions with 101 senior executives in pharmaceutical companies worldwide," half of whom were responsible for e-business matters in their companies, in order to ascertain why the industry has not yet wholeheartedly embraced e-commerce.

The study suggests that "since last year, the speculative froth has blown off the e-health industry," and notes comments made by Jim Clark, the founder of Healtheon, who argues that the complexity of the health care industry makes it difficult to offer the simple e-health solutions that are necessary for a viable e-business model. Many observers claimed that as the number of health-related web sites multiplied, the entire system would change overnight, but the skepticism of the pharmaceutical industry in this matter would appear to be justified.

However, 25% of interviewees said that they expected e-business to transform the industry, especially in the way that health care is managed and the extent to which patients become more involved. Nevertheless, among the drugmakers that are investing substantially in e-initiatives, nearly half of those questioned believe that their most important role is to help gain a competitive advantage over their rivals.

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