An assortment of pharmaceutical-, biotech-, and business-related articles that extend the value already provided by our print magazine.
By Bruce Murphy (Principal) and Muhammad Kashif (Manager), Deloitte
The jury is still out on the ultimate impact of healthcare reform in general, and perhaps this impact is even murkier in the life sciences space. Certainly there will be very dramatic changes to the providers (hospitals, primary care, etc.) and payers (insurance companies, health plans, etc.), but it is more difficult to see exactly how the changes will manifest themselves for the remaining entities in the health sciences arena.
Impact of Generic Drugs – they are being used in increasing numbers and this is changing the traditional business model for Big Pharma and ultimately creating price pressure and the need to find innovative and inexpensive ways to produce new drugs. This, in turn, challenges traditional execution methods and stresses control techniques.
Top-Line Growth Waning – due to pricing pressures and the overall impact of the economy, life sciences companies have had difficult time growing top-line revenue. This has forced them to aggressively control their cost structures to preserve earnings per share and maximize shareholder return.
Mergers & Acquisitions – as companies chase top-line growth, an effective answer has been merger and acquisition. Several large pharmaceutical companies have adopted this path to growth, and have demonstrated the significant opportunity to capture market share in this way. While these combinations certainly present opportunity, the glowing promise could go unrealized if the risks to the technology infrastructures and related control programs are not mitigated.
By Luka Mladinov, PMP
If asked, “What is quality on projects?” many people would answer, “When the customer is happy with the final result." To avoid such unclear criteria as “the customer is happy” we need to define more explicit quality requirements and acceptance criteria and determine how to measure the quality to ensure that predefined requirements are met. In terms of IT system’s implementation projects within the pharmaceutical industry, we could say that the quality or validation means establishing documented evidence, which provides a high degree of assurance that an individual application will consistently provide a product meeting its predetermined specifications and quality attributes. In shorter terms, the quality is defined as a degree to which the project fulfills requirements.
According to the Business Perspectives on Emerging Markets 2012-2017 Report by Global Intelligence Alliance (GIA), Brazil, Russia, India and China (BRIC) will retain their leading positions as the worlds’ top emerging markets for 2012-2017. In a ranking of the top 30 emerging markets international companies plan to target in 2012-2017, most of the non-BRIC emerging markets are in Asia or Latin America, with Indonesia, South Africa, Vietnam, Mexico, Turkey and Argentina ranking highest amongst secondary emerging markets.
With 2012-2017 economic growth projections [by IMF] of 3.7% for Brazil and 3.9% for Russia, compared to 8.5% for China and 7.4% for India for BRIC countries, it would seem that Brazil and Russia are attracting global investment for reasons other than their growth rates, such as their potentially huge domestic markets, natural resources and dominance within their regions.
Management teams are comfortable analyzing and communicating the organization mission, which describes “what” business you are currently in. There are numerous books, articles, and courses that provide analytics for assessing mission. Business schools teach several methods and theories for understanding an organization’s mission and translating this understanding into actionable objectives. Management teams are also adept at incorporating mission into organizational strategies, objectives, and marketing plans. I propose that an organization’s strategy, objectives, and marketing plans cannot and should not be determined without first articulating a vision.
It all starts with a vision, which describes “why” an organization exists and where it is going. Developing and communicating a true vision requires an understanding of the ideal future outcome, the unique values of the organization, and the image of this ideal future in which the stakeholders can visualize. A great example of a vision is the Martin Luther King Jr. speech in the Washington DC Mall in 1963. However, this article is not about creating a vision, but about the power of a vision in an organization.
By Amy Mills, Cary Miller, and Aaron S. Parker*
The Supreme Court of the United States delivered its much-anticipated and historic ruling in National Federation of Independent Business v. Sebelius today, holding the major provisions of the Patient Protection and Affordable Care Act (Affordable Care Act) to be constitutional. While much of the public debate and commentary focused on the validity of the individual health insurance mandate, the Affordable Care Act also contains important provisions for the development and regulatory approval of biosimilars. Although these provisions were not challenged, questions of severability placed them in jeopardy along with the whole of the Act. Today’s 5-4 Supreme Court decision leaves the Affordable Care Act, including the biosimilars provisions, largely unchanged.
Reduced hiring levels in Outsourcing and Services sector offset by modest gains in Pharma/Biotech and Medical Device.
Overall global hiring within the ZRG Life Science Index was up 3.7% for the quarter, finishing at a 79.1 level, the second highest level over the last 8 quarters.
Pharma had its highest hiring level in the history of the index (Q2 2010) while the Medical Device sector reversed on two straight quarters of declines by posting a 6.8% rise in hiring. Outsourcing and Services was the only sector with a quarterly decline in hiring activity but remained at near a three year high
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Millions of Americans find compatible mates on dating websites , which work by using questionnaires — some more complex than others — to determine compatibility.
With online matchmaking an accepted part of the dating experience, I think sponsors should apply the same principles to finding their most compatible match when they’re looking for a long-term partnership with a CRO:
Here’s a “Sponsor Seeking a CRO for a Committed Relationship” questionnaire.
Rationalizing Pallet Usage and Technologies Reduces Risks While Cutting Costs
Some pharmaceutical companies have already moved to streamline and upgrade their supply and manufacturing chains. However, the process all too often still operates as follows:
Randstad Pharma's Attachment Index provides quarterly insights into how attached employees are to their employers based on employee engagement and retention levels. Employee attachment is an important barometer for predicting employee productivity and impact. This quarter, the index also examines employees’ predictions for 2012, attitudes on career and fears around losing their jobs. Pharma is compared here with all sectors in general, IT, Finance & Accounting, Engineering and Healthcare respondents.
Top Randstad Pharma Results:
Patent Expiry of Blockbuster Drugs worth $150 billion presents lucrative opportunities for generic manufacturers
While the global generic pharmaceuticals market is expected to peak in 2012 owing to the patent expiry of several leading brands, regulations favouring generics and wider health insurance coverage by governments and private bodies are expected to boost generic consumption.
The Global Generic Pharmaceuticals Market was estimated to be $ 123.85 billion in 2010, growing at a compound annual growth rate of 9.3 per cent. The top eight global markets, namely the United States, Germany, the United Kingdom, France, Japan, Canada, Italy and Spain account for 80 per cent of the total generic drug sales worldwide.