Resources Platform for Management Consultants




Patent-protected drugs for human and/or animal diseases and generic (copy-cat) drugs




Prescription drugs: Pharmacies, hospitals, B2B

Over-the-counter (OTC) drugs: Retail outlets and pharmacies, email orders, B2B




Doctors, insurance companies, patients/customers, pharmacies, hospitals, government in some emerging markets




Product quality (efficacy, efficiency, convenience), brand names, and control of distribution represent the main basis for competition, together with an increasing price competition from generic manufacturers


Key Trends


(1) Major treatment areas are cancers, psychoneurology, and cardiovascular

(2) R&D challenges of finding high revenue blockbuster drugs

(3) Price competition from generic manufacturers

(4) Pressure from government and insurance to decrease prices

(5) High risk of not getting approval from regulatory bodies (high attrition rate)

(6) Emerging market opportunities are growing, including for outsourcing

(7) Demographic shift: aging population




Key drivers of revenue are the size of specific treatment domains, buy-in from doctors (best-in-class) speed to market (first-in-class), level of competition, expertise for the formulation of generics, and internal networking/advertising resources




High cost (and time) for R&D (discovery/formulation, clinical trials), manufacturing (economy of scale), and marketing (sales, promotion), which represent key barriers to entry 






Turk S (2014) Global Pharmaceuticals and Medicine Manufacturing, IBISWorld Inc, Los Angeles


Turk S (2015) Brand Name Pharmaceutical Manufacturing in the US, IBISWorld Inc, Los Angeles


Saftlas H (2013) Healthcare: Pharmaceuticals, S&P Capital IQ, New York


Lubkeman M et al. (2014) The 2013 Biopharma Value Creators Report, The Boston Consulting Group