核心和非核心结构外文翻译.docVIP

外文翻译 原文 Core vs. Non-Core Framework Material Source:/articles/2009/01/core-vs-noncore-framework,2004.02 Author: Neil Mac Allister, Richard Evans, and Katherine Wallace Across the pharmaceutical industry, dramatic and durable changes to the operating environment are calling for modifications to companies’ strategies and structures. The industry is facing a period of eroding pricing power, falling growth in the consumption of branded drugs, and tighter regulatory standards. As a consequence, companies are finding that revenue growth is becoming both slower and more volatile, and that returns on RD spending are pushing below the cost of capital. We recommend changes to the current business model that include smaller, more efficient and more flexible cost structures, as well as the increase of efforts to mitigate revenue volatility. Our aim in this article is to apply an analytical framework for how to think about an evolving business model for pharmaceutical companies. The pharmaceutical industry is operating within an increasingly unfavorable political, economic, and regulatory environment, largely as a result of negative public opinion, rising healthcare costs, and increasing involvement from governments in the purchase, reimbursement and market approval of pharmaceuticals. These pressures are being brought to bear on an industry whose structures reflect past rather than present and future conditions, particularly with costs that are both too high and too inflexible. To estimate profitability over long time cycles, we compared year one RD spending to year 10 net income, a rate of return that has been falling for as long as we can measure. Apparent returns are no longer higher than the industry’s cost of capital. Profits must exceed costs of capital for a business to remain viable. In pharma, this gap can be widened by either increasing the revenue return generated by each dollar spent on RD or by reducing the cost of commercializing the industry’s in