What is the mandate for the Globally Integrated Pharma Enterprise (GIPE)

I often struggle to rationalize the mandate for the Globally Integrated Pharma Enterprise (GIPE).  Is it greater supply chain effectiveness, optimized global commercial operations, ability to attract a skilled globally dispersed workforce, offshoring, improved operational effectiveness?   Is it a combination of some or all of the above?   Or, it is just the new buzz?

Regardless of my specific point of view, one thing is for sure – the explosive growth of emerging markets is not something that can be ignored by any Big Pharma.   The landscape is complex, confusing, and lacks trend consistency for the most part.   

China with an R&D spend of less than 2 percent, has made it a top priority to lower drug price.  The National Development and Reform Commission (NDRC) has reduced prices for 150+  drugs earlier this year – majority of them were antibiotics and cardiovascular drugs.  

India, on the other hand, with its burgeoning middle class and explosive growth has been an insignificant contributor to the global pharma market in terms of value.   The fiercely-competitive generics-based market with a fifth of the world’s population contributes to less than 2% of the world’s pharma market value.  Regardless, consistent with growth of the overall economy, pharma sales projections are poised for arguably the highest growth rates -- a projected 9 percent till 2016.

Closer to home, Brazil is the largest pharma in Latin America and is ranked after United States and Canada.  Although, the growth of generics poses some similarities with India, the over-dependence on imports combined with its currency woes highlights the challenges and, in turn, underscores the opportunity.

The global marketplace is likely to become more complex in the coming years.  The independence of the physician is decreasing as the policy makers dictate what doctors can prescribe.  Patients are increasingly researching treatment options and debating with their doctors. Regulators are becoming more risk-averse and governments are focusing more on prevention versus treatment.  All of this will require a more integrated strategy and approach towards pharma R&D and commercial operations and will necessitate the combined brainpower of academic and research institutions, care providers, payors, and, of course pharma enterprises.  

With the right firepower behind it, pharma companies will transform from producing medicine to managing outcome.

That, to me, is the mandate for the GIPE.