With this report, we will maintain a focus on economics and how industry players are adapting in this uncertain environment.

 

Supply chain management and logistic outsourcing is trending as a fresh savings opportunity for the industry.  In years past,  low logistic and management costs relative to drug profitability led few companies to gamble intellectual property rights and loss of line of sight in return for savings.  However, as a growing number of drug makers zero in on profitabilities and strive to become more nimble, third party logistic providers are revamping their operations to meet the unique needs of pharma, and are proving themselves as valuable business partners in the process.

 

Licensing and acquisition agreements continue to be an important aspect of the industry; however, approaches to partnerships are becoming more strategic.  Many companies are beginning to pare down their product portfolios to renew focus and help shape the types of treatment acquisitions or partnerships they will make.