A new event – ProcureCon Pharma – has been added to the ProcureCon series of global procurement conferences. The event is timely, as not only does purchasing in pharma have its own unique challenges but as Jonathan Betts, Sales & Marketing Director at Science Warehouse, suggests procurement enterprises are in a unique position to drive innovation and value in the industry through dynamic procurement.
We start by looking at some of the challenges facing the industry. For those of us that have been in and around the pharmaceutical industry for a while it doesn’t seem that long since the quoted costs for developing a new drug were a few hundred million dollars. In the mid-noughties they cut through the billion mark. But now, according to some research, the cost to bring a new drug to market can exceed a truly staggering $10bn.
This figure takes into account another unfortunate indicator that is weighing heavily on pharma – not only are costs going up but pre-market failure rates are increasing too. For example, a 2011 study showed phase II success rates declined from 28% in 2006/7 to just 18% in 2008/9. Considering that the chance of a drug subsequently progressing through phase III is 50%, the attrition rate is unsustainably high.
It’s been well documented that the biopharmaceutical industry is undergoing unprecedented change. The blockbuster era – where a single drug addressed a large market over a sustained period of time is ending. New medicines are more complex, address smaller markets and treatments increasingly personalised.
With costs escalating, the operators of healthcare systems globally are also looking to reduce spending. At the same time, the buyers of pharmaceuticals are asking more questions about the value of the products they buy. Unfortunately, the sellers aren’t always coming up with convincing answers. So whilst the industry is still making the decisions on which drugs come to market and their pricing, price sensitivity will be an increasing factor.
Science Warehouse is sponsoring ProcureCon Pharma 2012 to be held in Zurich on February 28th and 29th. You can visit our stand at the event where our expert staff will be on hand to answer any questions you may have. To find out more about the event please click here.
Please click here to read: ProcureCon Pharma 2: Why procurement has a critical role to play in the industry’s future
We look forward to seeing you there!