Monday, May 16, 2011

Why price increases will no longer work-a thought for the CEO's of life science companies.

So this article in FiercePharma on Friday (5/13) caught our eye.  What is the moment when reality and perception converge for the Pharma industry?  What will happen when the CEOs of all the top life science companies need to tell their boards there is no more room for growth.  We hope someone in these organizations is spending some time on this subject, because the time is now.

We have always suggested there is a new way to engage with customers.  Regardless of the marketplace conditions, we believe that treating a customer as you would like to be treated as a person is the best approach. But why has the industry through the years continued to see things differently, then when faced with the patent cliff the drug industry faces, we seem to be out of answers.

Our advice, start to manage the expectations of your boards that lower earnings and revenues are going to be a way of life.  Look to BRIC nations for your future growth and develop harvest strategies for Europe and the US.   Several are still looking to research and development for the answer, but we believe the best thing you can do is to ensure you keep the business you earn.

Ask your senior leadership team what they are doing to make sure refills, re-orders and customer complaints are managed more effectively than the constant focus on creating demand for your products/services.  We realize you have a big number to fill every year!  It seems we spend a lot of time (and money) doing some of the same things.  Medication adherence programs work!  Why not mandate that all your products and brands make them an integral part of their marketing plan. 

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