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The deconstruction of Big Pharma

A few years ago, a VC friend of mine (that had worked previously at a Big Pharma company) talked repeatedly about a concept that was gathering force - the deconstruction of Big Pharma: deconstruction, in this case, meaning the casting away of parts and downsizing.

At that time, while I listened to him and agreed, I didn't recognize this movement as t......

Full article >>> ctually which products were on the chopping block, and who to talk to about picking them up.

High-margin focus

The third stage of Big Pharma deconstruction has been a sell-off of non-strategic divisions to focus only on the higher margin ethical (prescription-based) products. These are products that yield gross margins of 90 to 95 percent (meaning the cost of goods is only......

Full article >>> to them. While physicians still view sales reps as a primary source of new product information, the effectiveness of these calls and the amount of time doctors will spend with these reps has decreased significantly as a physician backlash begins to develop.

Although use of the Internet has increased as a sales and marketing tool to get information to doctors, the personal relationship mo......

Full article >>> evamped the way they practice R&D. Big Pharma will need to do this even faster and better, however, as the Food and Drug Administration takes a harder look at drug safety.

Lastly, the free ride on drug pricing in the U.S. is coming to an end, and much like Europe and Japan, the U.S. (and the FDA) will most likely move to some kind of price capping on new ......

Full article >>> nce of patent expiration, creating its own new generic divisions, and accelerating an ethical-to-OTC- switch.

They will have to as Teva, the world's largest generic company, surpassed Pfizer in the first six months of 2006, for the first time, in total prescriptions. In an article in the Economist, it is estimated that by 2010, six to eight Indi......

Full article >>> t of Pfizer's sales force in the U.S. and Europe, or close to 6,000 sales reps, will be cut. Additionally, Pfizer is cutting five research centers (including a major one in Ann Arbor, Mich.), and several manufacturing sites around the world.

Pfizer currently has more than 15,000 scientists in seven major research labs around the world; a number of these employees will also be cut.

Full article >>> that need conquering (cancer, Alzheimer's, etc.), the re-emergence of old diseases (tuberculosis, malaria, antibiotic-resistance, etc.) as well as new the emergence of new diseases (SARS......

Full article >>> onsibility for any claims made or opinions expressed herein.......

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Source:wistechnology.com By Michael Rosen 02/12/07


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