Creative alliances with non-traditional players increasingly essential for survival in pharma industry, says E&Y

Information technology (IT) companies, large retailers and telecommunication firms are strategically poised to capitalize on rapid changes taking place in health care, and pharmaceutical companies are increasingly looking for innovative ways to collaborate with these new players to reach and improve outcomes for patients. These findings and other insights were released in Progressions, Pharma 3.0, Ernst & Young's annual global pharmaceutical report.

These factors amongst others are prompting pharmaceutical companies to broaden their focus from producing new medicines to delivering healthy outcomes - a shift that will be driven through creative partnerships and business model innovation.

According to Hitesh Sharma, partner and national leader, Life Sciences Practice, at E&Y: "Companies realize that the road ahead will become more complex with the entry of new players, which are being lured to the sector in increasing numbers. The global pharmaceutical companies are increasingly exploring alliances with non-traditional partners as a way to pursue opportunities in emerging markets. Emerging markets, such as India, will play a crucial role in promoting these opportunities and adoption of Pharma 3.0. Also the focus on emerging markets like India will increase opportunities in these markets - these include opportunities arising out of meeting the local health care needs, developing new supply chain distribution models to tap the rural markets and an opportunity to migrate some of the new models to the rest of world to help meet their needs. Also it is possible that the generic story may become stronger with Governments focus on cost of healthcare especially in the developed world."