Bloomberg UTV
Ernst & Young's global
life sciences report predicts a paradigm shift in the business model of pharma
companies. The report says that companies will now implement strategies to
reach out directly to patients instead of marketing products via doctors and
hospitals.
Earlier, the pharmaceutical
companies focused on generating revenue from blockbuster drugs and
collaborations with doctors and hospitals, but the story seems to be changing.
Ernst & Young's latest global life sciences report is predicting a shift
from the current approach to one that focuses on empowering patients to
undertake a more proactive approach for preventive healthcare.
In an interview with Bloomberg UTV, Hitesh Sharma, Partner, E&Y said that what used to be a simple concept of pharma companies selling drugs only to doctors and training them in terms of diagnosis, will now fundamentally change.
E&Y's life sciences report 3.0 traces the changing dynamics within the pharmaceutical industry. The report also highlights how companies will soon shift from a product-centric or business-to-business approach to a customer-centric or business-to-consumer approach.
Companies also seem to be shifting focus from acquisitions of products and companies to innovative partnerships to ensure customer experience and health outcomes.
Such convergence is expected to lead to better health outcomes for patients that will also enable governments to lower healthcare costs. However, it remains to be seen how companies will share profits and earmark investments.