Girish Mlahotra

Are Big Pharma's Dollar Days Nearly Over?

Pharmaceuticals are scrambling to regains their niche. Their desire to acquire biotech companies is staying with the model that is failing. Their current model has served less than 30% of the global (developed countries) population. As the economic levels of rest of the world rises and as generics become readily available, ethical pharmaceutical companies will have to think if they should compete with the generics. Their survival rests on serving the largest population and in order to do that they will have to compete with generics. They have an avenue that has not been considered. This is have the finest and lowest cost manufacturing technology which will prevent generics to take their market. Merck adopted a strategy to expand in India and if they improve their technology, they will have higher margins than in the developed countries.

Opportunities are their but every perspective has to be reviewed. Until recently the thinking has been that "we are invincible" but that is the past. New future will need different thinking.