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India emerging: Pharmas evolving business models - EY - India

What should pharma companies start doing?

India emerging: Pharma’s evolving business models

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This report explores the growing importance of the Indian pharmaceutical sector as an emerging market. It also suggests business models that companies should adopt to succeed in this evolving and challenging market.

Indian pharma companies will need to adapt their business models, organizations and processes to align with new environments. Leading global companies have adopted multiple levers to tap emerging markets for product portfolios, sourcing or innovation. However their ability to understand these markets and drive revenue growth will be the key determinant of the extent of their investment and participation.

What should pharma companies start doing?

  • Integrate internal organizations and collaborate with the external environment in line with emerging market realities
    • This will help to accelerate learning and implementation as competition in these markets increase significantly.
    • There will be a necessity to partner with health ecosystems and companies will be required to develop business models that will facilitate enhanced access and more market-realistic pricing, which are important factors for succeeding in emerging markets.
    • The business case for these models will need to consider non-traditional approaches to increase access to hitherto untapped segments of the population, e.g., partnering with governments through the PPP mode, as well as with health insurance providers, diagnostic providers and NGOs; improving patient awareness, literacy, etc.
    • While the challenges are manifold, the opportunities are significantly attractive for the pharmaceutical industry to participate in market creation and growth, and ultimately help in the creation of a better and healthier world for the future.
  • Broaden scope beyond R&D, manufacturer, supplier, distributor, etc., to a comprehensive health outcomes ecosystem
    • Companies should combine traditional wisdom and strategy with what works in a market. This allows for local market expertise to influence corporate strategy more definitively.

While the challenges are manifold, the opportunities are significantly attractive for the Indian pharmaceutical industry to participate in market creation and growth. Download our report for details.

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