Are you positioned for success in the new healthcare landscape?

Getting out of the pill bottle

During the past decade, we’ve seen a number of market forces disrupt the pharmaceutical industry against a backdrop of an ever toughening regulatory environment.

Pharmaceutical companies everywhere are feeling the heat. To navigate through this environment, they need to think differently about innovation, not only to survive through new and emerging challenges, but to thrive in them.

Success in the new healthcare setting will require Big Pharma to go beyond traditional R&D and product innovation. To create greater value for all stakeholders, companies need to think more holistically about innovation. We need to cast a wider innovation net whether it be developing new customer-led propositions, defining new business models or improving patient experience. It’s time to think outside the pill bottle.

The healthcare landscape is changing

The pharmaceutical landscape has significantly changed during the past decade. Executives are recognising that the days of blockbusters are over; many are facing challenges to bring new drugs to market, relying solely on their internal capabilities. Competition has become more fierce than ever before, putting pressure on margins. And generics continue to advance;

even traditionally well protected medications such as biosimilars are now under threat. Meanwhile, stakeholders' needs are changing and new needs are emerging.

Responding to these market forces is challenging and success will require new approaches.

Key market forces shaping the pharma landscape

Declining R&D productivity

  • Increasing risks and costs of R&D: over the last decade the cost of NME development has risen from $800 million to $3 billion
  • Increasing number of innovator molecules originating from outside of large companies
  • Industry consolidation has slowed innovation and limited the overall pipeline

Increasing competition and commoditisation

  • Molecule-based differentiation is becoming obsolete
  • Increasing margin erosion as generics penetrate traditionally well-protected areas
  • Companies venturing into non-traditional markets, including diagnostics, personalised solutions and healthcare services
  • Growing sense of urgency to find new points of differentiation to justify product value

New and changing customer needs

  • Increasing emphasis on medications that fit patients’ lifestyles
  • More active involvement of patients in their treatment and disease management
  • Payers seeking more cost-effective solutions
  • A growing preference for delivering healthcare in disaggregated settings, including remote care and self-care
  • Increasing pressure on healthcare professionals to improve services against toughening budget and resource constraints
  • Growing importance of patient attrition and patient compliance

Success requires a different approach to innovation

R&D innovation remains core to the pharmaceutical industry. However, relying on molecule-based differentiation is a risky and costly approach. To compete and grow in the new healthcare environment pharmaceutical companies are starting to employ a mix of other strategies, including:

  • Targeting specific pockets of opportunity for organic growth, through diversification if necessary
  • Considering alternatives to the conventional vertically integrated model
  • Moving towards ‘disease ownership’, by participating in the whole value pathway

However, there are significant opportunities for companies that take a more holistic approach to innovation:

Customer-led innovation - going beyond the narrow pill offering by developing a range of customer value propositions that respond to the new needs of patients, healthcare

professionals and payers, creating a platform for long-term sustainable differentiation.

Business model innovation - providing new ways to create and capture value – from the customer segments you target, the propositions you offer to how you organise operations internally and collaborate with others in the value chain.

Patient engagement - there are numerous touchpoints around the end-to-end patient journey where we can improve their experience with products / services and help develop new offers, e.g. around compliance programmes and personalised disease management solutions. There are also opportunities to provide additional support to other stakeholders.

Thinking more holistically about innovation can create real value for your customers and your business, positioning you for success in the new healthcare environment.



How we can help

Customer-led propositions to bring value to you and your customers for the short, medium and long-term:

  • Developing new customer-led propositions - to meet the needs of all major stakeholders
  • Rebuilding under-performing propositions
  • Proposition portfolio analysis and design
  • Patient experience design

Business model innovation to create and capture more value in the new healthcare environment:

  • Revitalising existing business models
  • Developing new, game-changing business models

Growth strategies to target new revenue platforms to drive medium and long-term growth:

  • Identifying and qualifying strategic growth platforms and opportunities
  • Setting vision and direction – defining new roles in the emerging healthcare landscape
  • Creating pragmatic delivery roadmaps and mobilising delivery teams


New customer value propositions

New customer value propositions

Companies continually look to find new ways to satisfy customers profitably and engage Edengene to assist them in identifying new and..

Strategic Growth Platforms

Strategic Growth Platforms

Edengene works with major businesses to identify commercially and strategically attractive new markets..

Our Team

Olga Tikhonova

Olga Tikhonova

Olga is a senior brand, marketing and strategy consultant with 17 years global experience in developing marketing strategy, new product..

Our Work

BT Healthcare

BT Healthcare

Creating a New Healthcare Service..

Innovation process

Innovation process

Developing innovation process & differentiated propositions..

Putting the Chemist back into Boots

Putting the Chemist back into Boots

Developing a £1.2bn business segment..