This may seem like a strange assertion to some, but consider the facts. Since the early 1980’s, Big Pharma companies have been busily casting off the people and facilities that were once developing their drugs. The rationale was that they could then focus on their core activities of discovery research and marketing.
The vital flaw in this ill conceived plan was that development of new products has to remain under the control of the companies intending to market the products—otherwise that vital link between end-users of products, and those carrying out the development work, is lost. This is what we now have with Big Pharma, to the point where it now cannot develop new products for itself.
This has resulted in the valley of death which has subsequently become the patent cliff. To quote from Find It, File It, Flog It, Big Pharma might just as well jump off that cliff now if it intends to continue building businesses with this crippling [disconnected] attitude. All that is left is to continue trying to squeeze more and more out of less and less. Eventually, nothing will be left.
The seeds of ‘nothing left’ are currently being sown with all the mega-merger activity that is now going on to mask the real issues. This will result in more divestment of value creating capability and irreversible decline.
What can Big Pharma do, then, to reverse things? It needs a new model for product development. Learn more about that in a day or two…