Pharmaceutical Commerce - May/June 2010 - (Page Cover1)

Business Strategies for Pharma/Bio Success www.PharmaceuticalCommerce.com MAY/JUNE 2010 Business & Finance Brand Marketing | Communications The Drive to Develop New Commercial Models Surprise! Employment Is on Industry’s coming challenges will force dramatic change on how products are brought to the Rise—in Contract Sales market and businesses are sustained. Industry leaders have already started the process By Chris Nickum, IMS Health Consulting By all accounts, biopharma executives have a complex 2010 agenda, requiring that they work tirelessly to: • Reconsider their basic business models while driving efficiencies in their in-line assets, with 75% of mature markets being undifferentiated (see box) by 2015 • Improve their launch capabilities and effectiveness in the face of only 3% of historical launches considered as excellent, according to the 2008 IMS Launch Excellence Study [1] • Capitalize on opportunities in pharmerging markets even though only 23% of companies are reallocating resources to these opportunities currently. • Seek and deliver on new corporate growth drivers … all while considering an environment that will evolve several times over the next 10 years. Meanwhile, they must continue to conduct business as usual—the equivalent of changing an aircraft’s engines in mid-flight. Maximizing the efficiency of commercial operations is standard fare for companies operating in a difficult economy with budget constraints. Yet, because the biopharma world is being upended, creating commercial efficiencies is no longer simply about managing costs; it’s about devising a New Commercial Model (NCM) that better leverages available or yet-to-bediscovered approaches to suit the new market reality. This requires fundamental change that ranges anywhere from incremental to substantial. Yet, based on IMS research conducted with 500 industry executives, over 90% of respondents have not implemented any major changes to their go-to-market approaches. [2] The good news is that as the business environment evolves, a clearer picture of the task ahead appears. IMS has been on the forefront with our clients helping the industry define, quantify, and address these new continued on page 12 > While staff sales forces continue to shrink, the contract sales business is expected to nearly double over the next five years By Suzanne Shelley The thinning out of pharma sales forces is a well-recognized industry trend. Less well known is the growth in contract sales, partially a direct result of that winnowing. According to IMS Health, contract sales organizations (CSOs) are in the process of doubling their workforces between now and 2015—from about 6,000 to 10,000-12,000. Leading CSO organizations have been showing >12% profitability since the middle of the past decade, and are forecast to do even better in the next five years, according to market researcher Kalorama Research (New York). “Traditionally, the advantages of contract sales are shifting a fixed cost—a sales staff—to a variable cost, and being able to turn the CSO on or off over a finite period of time, usually no longer than 18 months,” continued on page 20 > Information Technology How IMS views a new commercial model journey Serialization Efforts Energize Track-and-Trace Technology By fits and starts, pharma and healthcare providers are moving ahead on IT technologies to layer track-and-trace capabilities on supply chains By Nicholas Basta As promised to Congress, in late March FDA released its guidance on “serial numeric identifiers” (SNIs), which represents FDA’s thinking on the topic of putting unique identifiers on unit packages of pharma products going into distribution. That task is a preparatory step to the long-sought capability for “track and trace” in the pharma supply chain. The FDA guidance didn’t mandate any steps to be taken immediately; the commitment to provide the guidance itself was a compromise coming out of the 2007 FDA Amendments Act, for which the Congressional debate leading up to its passage was the last time Congress as a whole took a stab at track-and-trace legislation. Track-and-trace, in turn, was the foundational step toward “e-pedigree” as defined by the California legislature, containing the elements of SNIs (applied by the manufacturer), and data collection by trading continued on page 30 > What’s Inside Medical-Claims Analysis of Off-Label Prescribing REMS: Smoothing the Path to Drug Safety MENDOTA, IL PERMIT 200 14 18 Global Pharma Logistics Services Multiply 26 PRSRT STD US POSTAGE PAID http://www.PharmaceuticalCommerce.com

Table of Contents for the Digital Edition of Pharmaceutical Commerce - May/June 2010

Pharmaceutical Commerce - May/June 2010
Contents
Editorial
Op-Ed
Top News
Business & Finance
Brand Communications
Supply Chain | Logistics
Information Technology
Packaging & Drug Delivery
Legal | Regulatory
Meetings
Editorial Index

Pharmaceutical Commerce - May/June 2010

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