Does the pharmaceutical industry face the perfect storm in the foreseeable future? By all accounts we are entering a period of regeneration, a very unusual situation during which we will have to completely re-evaluate the way that we focus on our daily problems. The pharmaceutical industry is not alone here, as many other industries are also set for a quantum shift in the way that they do business — just look at the auto industry, as an example. The pharmaceutical consultant has his or her work cut out as they approach the issue of educating the client and whilst these issues will be very challenging, they should represent a potentially exciting time for the consultant willing to go the extra mile. As everything must change, it seems that these are not good times for those who are ill-prepared for the challenge.
Looking into the future, what can we see? First of all, the “patent cliff” is almost upon us and this is likely to unleash market forces that will completely redefine many different areas. We also know that the market itself is shifting in favour of niche solutions to increasingly complex issues, instead of the previously predominant “blockbuster” product approach. The United States Congress laboured for many a day before passing a highly controversial health-care reform bill and we are yet to see how this will slowly unfold as it will introduce tens of thousands of people to healthcare products, many for the first time, due to insurance overhaul. Markets around the world are feeling the financial pinch and this is especially so in the United Kingdom, where budget deficits are completely unsustainable; this is almost certainly going to lead to a significant reduction in health care spending. Little wonder that the share price of leading pharmaceutical companies is taking such a battering.
The heady days of the past have come to an end and the pharmaceutical consultancy must adapt to survive. When it comes to sales and marketing, it’s time to shift away from sales and more towards marketing, as we cannot rely on all the traditional methodology anymore. Not surprisingly, pharmaceutical marketing training must be reinvented, to reflect the pressures of the New World. Add an increasing trend toward the regulation of pharmaceutical marketing in the US and you can argue that this industry will be difficult to recognise, as compared to its former self, within a few years time.
So where should the pharmaceutical consultancy start? It will be necessary to reconsider all the emphasis that is being placed on sales and come up with innovative strategies instead. It seems certain that the traditional army of sales representatives will be much smaller, more targeted and the focus of niche related pharmaceutical marketing training. Certain regional markets may have more problems than others, but we will see changes everywhere during this process of reinvention. As such, the changes in the US market and the significant budgetary cuts in the government led UK market will redefine the playing field. Pharmaceutical consultants must be able to drive the pharma company forward with different approaches to marketing, focusing on niche markets and above all else, ensuring that more meaningful relationships are developed with end-users. In short, the business relationship is likely to become far more personable, and far less number oriented.
Alan Gillies is the Managing Director of L2L Consulting, specialising in enabling pharmaceutical companies to achieve new heights of productivity and performance, throughout all levels of management and revenue generating activities.