Last year Ernst & Young coined the term ‘Pharma 3.0’ describing an ecosystem where healthcare innovation shifts from being product centric to an outcomes focus. This market transition has come as a result of the generally recognized lack of a sustainable model in global healthcare concurrent with rapid advancements in healthcare technology. This paradigm shift has created multiple transitions in the healthcare market, including how products come to market and how corporate enterprises mobilize their resources. It has also has opened the door for traditional biotech and pharm companies to invest in non-drug innovations like Smartphone Apps and offering services aimed at improving overall health outcomes through disease management and coordinated care. This is happening at a time when patients are becoming more informed and more engaged with managing their healthcare decisions.
Speaking on a panel at BIO 2012 in Boston this week, Robert Prachar, senior vice president at Endo Pharmaceuticals Holdings Inc., stated that there is an abundance of information out there, but “The question becomes how we build decision-support systems that are patient- and physician-friendly rather than just whatever flows to the top in a Google search? Anyway you cut it, we are still in an employment-based health care system…If we start to deliver coordinated care that works, people will pay for that.”
William Tulskie, CEO of HealthcareIT Inc., stated that to succeed in the new environment, companies have to be prepared to work collaboratively and move away from a product-based mentality. People want and need personalized medicine, but that has not made its way yet to the level of the doctor and the patient.
Dr. Daniel Sands, Director, Healthcare Business Transformation at Cisco Systems. “The technology is already available to change our business models, for example, there are over 13,000 healthcare apps available currently as well as educational websites, social media platforms and wireless devices. Unfortunately, we don’t have enough technology in common use at the encounter between patient and physician. However, new technology is forcing us to change the way we think about delivering health care. We have to innovate or die.” The real problem, Sands said, is working the adoption of that technology into profitable business models.
To survive in this new system, companies will have to move to patient centric, data driven, outcomes focused models. That will be challenging to all but the most nimble of companies. And despite the rapid development of and availability of new technologies, it will be awhile before we see the full adoption, and thus the benefit, in the delivery of health care.