Pharmaceutical Executive Europe - September 2008 - (Page 17) Critical Vision The June announcement made by Daiichi Sankyo (Japan) that it would acquire a majority shareholding in Indian generics company Ranbaxy for $3.4 billion provides a good example of this new landscape. The deal, expected to close in March 2009, brings together two mid-tier companies with complementary strengths to create a significant presence in the relatively underdeveloped Asian markets. Whether it will prove a good investment remains to be seen. What price success? It is clear that new business models are urgently being sought by the major players. The winners in all this will be those who are realistic, and the signs aren’t good. While researching the new pricing rules in the UK, I spoke to the UK subsidiaries of several major pharma companies on the new Pharmaceutical Pricing Regulation Scheme (PPRS), the salient points of which are that it still allows companies to set prices at the time of a drug’s launch and to modulate all their prices to maximise what they can earn from the UK’s National Health Service. The PPRS is an important contract because UK prices have a significant bearing on what can be charged throughout Europe. Last year, the UK Office of Fair Trading produced a report that said the government wasn’t getting a fair deal from the pharma industry and, as a result, the whole deal was to be renegotiated earlier than planned, with the real possibility that its founding principles — to freely set prices at the time of launch — would be reformed. This didn’t happen. Instead, an across-the-board price cut of 5% was introduced. However, when you can modulate prices within an overall profit-capped framework, this is of little significance. I was surprised, therefore, to learn some major companies, rather than being grateful for this piece of good fortune, chose to bemoan the fact the PPRS was being renegotiated at all. It will be interesting to see how long it takes for realism to take hold. ■ DO YOU WANT TO DELIVER HIGH LEVEL SALES PERFORMANCE? Learn the latest techniques to develop high performance sales teams IMS’s interactive Senior Sales Management Course provides pharmaceutical sales executives with a better understanding of today’s emerging trends in sales force management, and offers a full range of tools and techniques for more effective field force management. Our expertise and sophisticated computer simulations help develop best-practice processes and the behavioural changes that ensure business success. This Autumn, courses run: • 29 September - 1 October in London • 22-24 October in Paris References 1. The Rise of Mid-Sized Pharma (BioPharm Knowledge, UK). 2. EvaluatePharma Yearbook 2008 (BioPharm Knowledge, UK). For more information visit: www.imshealth.com/learningsolutions TM © 2008 IMS Health Incorporated or its affiliates. All rights reserved. 18 Executive Profile Pharm Exec Europe talks to NNIT’s CEO, Per Kogut. 22 Regulatory Affairs Will the FDA/EMEA joint inspection programme work? 25 Last Words The month’s key events from the industry’s mouth. 4 News A round-up of the last four weeks in pharma. http://www.imshealth.com/learningsolutions http://www.imshealth.com/learningsolutions
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