Pharmaceutical Industry Faces Major Transition as Traditional Commercial Model is Disrupted
November 21, 2023
The traditional commercial model in pharmaceuticals has been disrupted due to shifts in the healthcare market, economic pressures, and increasing regulations. A significant challenge is the consolidation in healthcare delivery, resulting in larger, more powerful healthcare systems. The power dynamics for drug purchasing decisions have also shifted from physicians to C-suite executives and population-based decision-makers in sizeable integrated delivery networks. This change necessitates a new strategy for managing large enterprise accounts and customer engagement, with an increasing move towards virtual engagements. Pharmaceutical manufacturers are also grappling with the impacts of price regulations and industry reforms worldwide, compelling them to re-evaluate their approach to research and development, pricing, market access, and cost structures. Given the increasing demands for scientific proof of value and strategic engagement with organized customers, manufacturers need to rethink their commercialization strategies. Transitioning to a new commercial model remains a continuous challenge for the industry.
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[Source: Forbes, November 21st, 2023]
