New York: A new survey of U.S. and EU-based pharmaceutical sales and marketing executives reveals that 68 percent believe "the current business model is broken."
The survey, conducted jointly by Booz & Company and National Analysts Worldwide, was designed to take the temperature of the industry on current challenges and help analysts understand how industry leaders plan to overcome those challenges in the next few years.
"Those of us who work with pharma companies to develop and implement commercialization strategies know very well the challenges of maximizing asset value in this new environment, where both key customers and customer expectations are being redefined," observes Susan McDonald, CEO of National Analysts Worldwide and leader of the firm's healthcare practice. "We're not surprised to hear people acknowledge that they can't count on doing 'business as usual' and that they're looking for new ways to gain traction."
"The pharmaceutical industry is the eye of a hurricane of change. The sales and marketing model is being forced to move to one that is much more complex. And this is happening in an uncertain market with incredible pressure to reduce budgets. The only clear path out of the storm is for companies to identify and focus on building the few critical capabilities they will need to succeed," says Danielle Rollmann, a partner in Booz & Company's global health practice.
"Virtually everything is changing in the model and the market. In response, most respondents say they plan to spend more on all their target marketing activities. Yet this is not aligned with what pharma is doing and needs to do at a company level. The companies that focus, prioritize, and follow a coherent strategy will be the winners," says Rolf Fricker, a Munich-based partner at Booz & Company.
The survey, which was completed in late 2011, is based on a sample of 156 sales and marketing leaders, most with global responsibilities, at pharmaceutical companies in the U.S. and EU. Survey participants were primarily vice presidents and directors.
The key findings are available here.