Beyond the Blockbuster Model? Personalised Medicine as Driver for New Business Models in the Pharmaceutical Industry
Year: 2012
Type: preprint
Abstract: The pharmaceutical industry stands at a turning point: As pipelines for new blockbuster candidates are dry and patents for old blockbusters are running out, how can pharmaceutical activity remain profitable? The choice is either between holding on to the blockbuster model, which was profitable in the past, but won’t be sustainable in the future or going with the new trend of developing medicines for smaller patient groups (personalised medicine), where return on R&D activity is not as profitable as for blockbuster drugs, but is likely to continue into the future? In this article we argue that the reason why the pharmaceutical industry has not responded to this trend in the industry yet is because of its dominant industry logic, which impedes the realisation and action against threats as well as opportunities. We identify and categorise the barriers and drivers of change related to the dominant industry logic, but most importantly, give recommendations of how these barriers can be overcome by pharmaceutical firms.
Source: SSRN Electronic Journal
Authors: Melanie Reimann, Elisabeth Eppinger, Martin Kamprath, Andreas Braun
Institution: University of Potsdam
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1786237185