New Ecosystems In Pharma: Maturing Markets Mean New Models Are Needed

Success in the pharmaceutical industry requires new thinking about segmentation of drug markets and new insight into how the opportunity for pharma companies is changing. Oliver Wyman’s ecosystems framework attempts to determine where unmet medical need, innovation, and a strong value proposition for payors reside.

Pharma companies are under pressure. What were favorable tailwinds a decade ago – abundant innovation, relative pricing freedom, benign public and regulatory attitudes – have turned into headwinds. Safe, effective generic therapies are available for many diseases, raising the bar on innovation. Payors are pushing back, restricting the use of expensive new therapies if they don’t show economic benefit. Regulators, stung by widely publicized product failures, are increasingly cautious. At the same time, the science of drug development is getting harder as the industry targets diseases like Alzheimer’s or diabetes, where the biology is less understood and treatment pathways are more nuanced. While the industry remains highly profitable, growth has stagnated. What was once an advantaged economic formula is no longer sustainable.

Although the challenges are self-evident, pressure for change is uneven. Despite slowing growth and weaker pipelines, most of the industry’s largest companies remain enormously profitable. The churn of patent cliffs...

Read the full article – start your free trial today!

Join thousands of industry professionals who rely on In Vivo for daily insights

  • Start your 7-day free trial
  • Explore trusted news, analysis, and insights
  • Access comprehensive global coverage
  • Enjoy instant access – no credit card required

More from Archive

Final Chance To Have Your Say: Take Our Reader Survey This Week

 

Editor’s note: This is your final call to participate in the survey to better understand our subscribers’ content and delivery needs. The deadline is 20 September.

Early Development Deals: Ipsen's Strategy For Biomarker-Driven Success

 

Mary Jane Hinrichs, Ipsen’s head of early development, talks to In Vivo about getting ahead of the competition by securing deals for candidates before they enter Phase I trials.   

Shape Our Content: Take The Reader Survey

 

Editor’s note: We are conducting a survey to better understand our subscribers’ content and delivery needs. If there are any changes you’d like to see in the coverage topics, content format or the method in which you receive and access In Vivo, or if you love it how it is, now is the time to have your voice heard.

In Partnership with Cerba Research

Prioritizing Safety in CAR-T Therapy: Patient Monitoring with Cerba Research’s Testing Portfolio

The cell and gene therapy (CGT) clinical trial landscape in general and CAR-T cell clinical trials in particular are a special focus for the FDA, EMA, and other regulatory agencies. The whole industry is thus aware of the recent FDA safety investigation and requirements for labeling CAR therapy products.

More from In Vivo

Medtech Innovators Court London-Based Investors At BioWales 2025

 
• By 

BioWales in London 2025 showcased the efforts healthtech innovators are making to meet investors on their own turf, illustrating changing attitudes and evolving needs.

Rising Leaders 2025: Metsera’s Whit Bernard’s Musical Path To Biotech Leadership

 
• By 

Metsera CEO Whit Bernard applies an unconventional leadership philosophy to develop next-generation obesity therapeutics, including monthly GLP-1 injections and oral peptides.

UK Bets On Regulatory Innovation As Competitive Advantage In Synthetic Biology

 
• By 

The UK government has prioritized synthetic biology and created a "concierge service" for biotechs just as the US cuts science funding.