Pharmaceutical Industry Must Adapt To Individualized Health Management, Report Says
An increasingly pervasive electronic environment will transform the global healthcare market and put individual consumers center stage, according to a report entitled Pharma 2005: Marketing to the Individual, published by PricewaterhouseCoopers (PWC; Florham Park, NJ), the world's largest professional services organization.The report discusses how the "electronic environment" will expedite demand for individualized health management, offer the pharmaceutical industry new ways to meet market needs, and provide significant opportunities for growth. But if the industry is to respond effectively, it will need to make radical changes in the way it develops, promotes, and sells new products.
"Not all major pharmaceutical companies will be able to rely totally on blockbuster medicines," stated Fergus Byrne, head of the PricewaterhouseCoopers Global Pharmaceutical Consulting Practice. "Many will need to look for significant revenues elsewhere."
"Customized, targeted therapies will gradually displace the reliance on mass-market remedies," added Jerry Benison, head of the PricewaterhouseCoopers Pharmaceutical Practice in the U.S. "The focus will expand from treating the sick and managing disease to also helping people stay well. But individualized health management, as we've called this trend, goes much further. In the future, pharmaceutical companies will have to reach—and listen to—ordinary consumers like you and me."
Impact of the E-Environment
The report suggests that an all-embracing electronic environment has accelerated the influence of four key forces—consumer empowerment, information management, technology, and science—now collectively reshaping the worldwide healthcare market. With access to information sources like the Internet, for example, consumers have begun to demand a much bigger say in their own healthcare.
Meanwhile, advances in medical technology and science are paving the way for an increased understanding of the causes of ailments and totally different kinds of treatment. New diagnostic devices and tests along with 3D digital tools will provide virtual access to people's inner organs and biological processes; miniaturization will lead to intelligent implants; and functional genomics will eventually result in medicines that are increasingly tailored to specific genetic profiles.
"In short, we'll see the emergence of a new form of health management that is individualized, informed, interactive, immediate and integrated," stated Peter Solano, pharmaceutical partner at PWC and co-author of the report. "With electronic medical records, customized treatment protocols, and personalized medicines, a patient will be able to get the healthcare that is best for him or her."
Challenges for Pharmaceutical Companies Today
The trend towards individualized health management will create an array of new opportunities for the pharmaceutical industry. Most companies develop a portfolio of unrelated products. They also concentrate on medicines for managing illness. In the future, however, patients will want a coherent range of products and services that cater to their individual needs as they change over time, including disease prevention, disease treatment, and health maintenance.
In her teens, for example, a woman is likely to be interested in treatments for acne, PMS, weight loss, and birth control. As she matures, her interest will shift to fertility and pregnancy, breast and cervical cancer, then menopause and, ultimately, to the problems of old age. "Seen from the individual woman's perspective, this is a biological continuum—not a series of unrelated medical issues," said Pat Pesanello, principal consultant and co-author of the report. "There is, thus, an opportunity to build a long-lasting relationship with that individual, by providing her with products and services which cater to her needs as they evolve."
The same is true of diseases that cross therapeutic boundaries. People with diabetes, for example, are also highly susceptible to cardiovascular disease, renal problems and eye disorders. In other words, they need healthcare that covers diabetes and all the other illnesses associated with the disease as it progresses over time.
"Most pharmaceutical companies only focus on small parts of the 'jigsaw' but we believe this will change," Pesanello added. "Equipped with an understanding of the individual, the pharmaceutical company of the future will deliver a total package for health management spanning every aspect and stage of a particular therapeutic category."
Although few companies will be able to make and market the full range of products and services required for individualized health management by themselves, they will begin to join forces with other manufacturers and other organizations. Many of those alliances will be with organizations of which they have little experience like the electronic health intermediaries now beginning to emerge.
Building a Foundation for Tomorrow
However, many companies will have to make major changes, if they are to capitalize on the trend towards individualized health management. They will have to collect data on individual consumers and use that information to drive their innovation, their research and its subsequent development. They will also have to forge relationships with a more complex consumer base that includes patients and consumers. Companies will need to build powerful brands. Beyond just branding products they will need to develop strong corporate identities, and create a platform for genuine dialogue with multiple "markets of one."
The report suggests that the Internet will play a key role in this respect. It will enable pharmaceutical companies "to reach and influence customers—professionals, payers, and consumers—relatively economically." But it will also erode regional variations and increase competition worldwide. So companies will have to offer their customers much better value and service in order to keep pace with the speed, convenience, and breadth of choice consumers will learn to expect.
They will have to act fast, the report suggests. The seeds of individualized health management are already here, as a growing number of gray-haired "baby boomers" try to turn back the biological clock. With an aging population that is better informed, more powerful, and more demanding, companies must begin to develop the products and services, and invest in the skills, technologies, and strategies, they will need to ensure access to tomorrow's markets.
"Pharmaceutical companies cannot afford to wait until consumers are pounding at the gates," Solano said. "They will have to identify and make what patients and consumers really want, make it at a price they will pay and prove that it will work." If they do so, however, the rewards will be substantial, with better outcomes for customers and better returns for investors.
PricewaterhouseCoopers is a professional services organization. The company helps clients solve complex business problems and enhance their ability to build value, manage risk, and improve performance.
For more information: Peter Solano, PriceWaterhouseCoopers, 400 Campus Dr., Florham Park, NJ 07932. Tel: 973-236-5470. Fax: 973-236-7005.