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Creative Alliances with Nontraditional Players Increasingly Essential for Survival in Pharmaceutical Industry, New Ernst & Young Report Finds
Date:2/11/2010

NEW YORK, Feb. 11 /PRNewswire/ -- Information technology (IT) companies, large retailers, and telecommunication firms are strategically poised to capitalize on rapid changes taking place in health care, and pharmaceutical companies are increasingly looking for innovative ways to collaborate with these new players to reach and improve outcomes for patients. Despite near universal agreement among pharmaceutical industry executives that these nontraditional companies will help reshape the healthcare marketplace, most feel unprepared to address the challenges these new creative alliances will bring. These findings and other insights were released today in Progressions, Pharma 3.0  Ernst & Young's annual global pharmaceutical report.

The Progressions report identifies several industry trends driving nontraditional companies into the sector, including health reform, health IT, comparative effectiveness, and the rising confidence in consumer power. These factors and others are prompting pharmaceutical companies to broaden their focus from producing new medicines to delivering "healthy outcomes" – a shift that will be driven through creative partnerships and business model innovation.

"Despite the tumultuous changes over the last few years, executives realize the road ahead will become even more complex with the entry of new players which are being lured to the sector in increasing numbers," remarked Carolyn Buck Luce, Ernst & Young LLP, Global Pharmaceutical Leader. "In this environment, successful companies will find new ways to combine their unique assets and attributes with those of partners through dynamic collaborations focused squarely on patient outcomes and the consumer experience."

The Progressions report describes the rapid transition from the industry's long
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SOURCE Ernst & Young LLP
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