The pharmaceutical industry is facing some fundamental changes: with markets opening up, companies will increasingly need to justify their value proposition, rather than relying on price increases to deliver growth. In this marketplace, specialty pharmaceutical companies will be able to increase the likelihood of success by investing heavily in R&D, focusing on unmet need and staying at the forefront of technology. At the same time, drug manufacturers will increasingly explore the opportunities of alternative distribution models which may enable them to reduce costs.

Company specific thoughts:

Generic drug manufacturers have increasingly turned their attention to complex generics and biosimilars – albeit with varying degrees of success. Mylan is benefiting from a successful pipeline of high-value biosimilars, alongside product and geographical diversification. Meanwhile, the positioning of Perrigo as a leading store brand OTC manufacturer means the company is well positioned to capitalize on switches to OTC. But for other specialty pharmaceutical companies, high leverage is an obstacle to achieving the flexibility needed to adapt to changing market conditions.


Healthcare: Up close

The future will be determined by those who are willing to reinvest, adapt and turn future threats into opportunities.