【优质】ThePharmaceuticalIndustry.ppt

Global Pharmaceutical Industry Robert Agon – Industry Analysis Alex Luk – Bristol-Myers Squibb Jacky Lui – Pfizer Ray Li – Merck Overall Health Care Industry Pharmaceutical vs. Biotech Two Distinctions: 1) Business model Biotech: Much smaller and limited resources to market drug Just a research engine Pharmaceutical Larger and market drug themselves 2) Field of Research Biotech: Use “genetic engineering” Pharmaceutical Use empirical screening to develop drugs Pharmaceutical Industry Background The U.S. is the leader in market share and has five of the ten largest companies Global pharmaceutical sales grew 9% in 2003 to $466.3 billion In 2003, 64 blockbuster drugs had sales over $1 billion Industry is less sensitive to swings in the business cycle COGS, RD and Marketing are the largest expenditures Industry Background (cont.) Patents are extremely important; they give a company exclusive rights to produce a drug for 20 years Many pharmaceutical companies attempt to extend their patents by significantly changing the nature of the drug Future success of a drug company depends heavily on the number and quality of drugs in the pipeline The industry has traditionally relied on the “blockbuster model”, where a few key drugs make up most of the company’s revenue Potential New Business Strategies The Diagnostic-Led Strategy based on the observation that even when there are established treatments, significant numbers of patients are either not diagnosed in a timely manner or not diagnosed at all The Single-Pill Strategy seeks to simplify the lives of those taking multiple medications The Treatment Platform Strategy based on the assumption that various medical conditions share common denominators and can be treated using the same therapeutic approach Key Issues Affecting the Industry In August 2004, New York officials filed a lawsuit against 44 drug makers, claiming they overcharged Medicaid for prescription drugs Merck’s