Pharma 3.0: Are you ready? The era of Pharma 3.0 is upon us. According to Ernst & Young (EY), several industry trends, including healthcare reform, health IT, comparative effectiveness, and the rising confidence in consumer power, are driving nontraditional companies into the life-sciences sector. These factors, among others, will continue to prompt pharmaceutical companies to broaden their focus from producing new medicines to delivering “healthy outcomes" — a shift that will encompass creative partnerships and business model innovation. In its recent Progressions report, EY describes the transition of the industry’s long-standing, vertically integrated, blockbuster-driven model, defined as Pharma 1.0, to today’s Pharma 2.0 business model, to the upcoming era of Pharma 3.0. Under this 2.0 business model, companies adopted a number of changes to improve productivity and financial performance, from pursuing more targeted therapies, broadening their portfolio of products and capabilities, to establishing more independent and flexible R&D units, to boosting partnerships with biotech firms and universities, and outsourcing many noncore functions. Experts, including Carolyn Buck Luce of EY, say even as pharmaceutical companies continue to implement strategies to prosper in Pharma 2.0, these efforts may be overtaken by a Pharma 3.0 ecosystem, a model that will necessitate the inclusion of established industry members, nontraditional companies, and data-empowered consumers. In this month’s feature article, M&A: A Short-Term Solution Whose Time May Be Over, Ms. Buck Luce discusses how Pharma 3.0 will impact the future of M&A activity in the industry. In this same article, she cites a prime example of a nontraditional company partnering with a major pharma company to develop an innovative patient-centric tool: Nintendo and Bayer created the Didget glucose meter, which children can plug into their Nintendo DS players to monitor their blood-sugar levels. PharmaVOICE has been reporting on pharma’s need to shift its business model from a pill-based system to one that is patient-centric and outcomes-based for several years, and we thank those thought leaders who first brought this movement to light. To learn more about why companies should transform their current business model to one that is focused on patient wellness and provides services and information around keeping patients healthy rather than just treating them after they get sick, tune into a podcast featuring Dr. Elby Nash and Nagaraja Srivatsan from Cognizant. Also stay tuned for PharmaVOICE’s June Forum in which thought leaders from all sectors will discuss how Pharma 3.0 will impact all facets of the life-sciences continuum. Publisher Lisa Banket Editor Taren Grom Creative Director Marah Walsh Managing EDitor Denise Myshko Senior EDitor Robin Robinson features EDitor Kim Ribbink Contributing Editor Carolyn Gretton design associate Ariel Medel national account manager Cathy Tracy WEBCAST?NETWORK?PRODUCER Daniel Limbach CIRCULATION Assistant Kathy Deiuliis Copyright 2011 by PharmaLinx LLC, Titusville, NJ Printed in the U.S.A. Volume Eleven, Number Two PharmaVoice (ISSN: 1932961X) is published monthly except joint issues in July/Aug. and Nov./Dec., by ­Pharma­­Linx LLC, P.O.?Box 327, Titusville, NJ 08560. ­Periodicals postage paid at Titusville, NJ 08560 and additional mailing offices. Postmaster: Send address changes to PharmaVoice, P.O. Box 292345, Kettering, OH 45429-0345. PharmaVoice Coverage and Distribution: Domestic subscriptions are available at $190 for one year (10 issues). Foreign subscriptions: 10 issues US$360. Contact PharmaVoice at P.O.?Box 327, Titusville, NJ 08560. Call us at 609.730.0196 or FAX your order to 609.730.0197. Contributions: PharmaVoice is not responsible for unsolicited contributions of any type. Unless otherwise agreed in writing, PharmaVoice retains all rights on material published in PharmaVoice for a period of six months after publication and reprint rights after that period expires. E-mail: [email protected]. Change of address: Please allow six weeks for a change of address. Send your new address along with your subscription label to PharmaVoice, P.O. Box 292345, Kettering, OH 45429-0345. Call us at 800.607.4410 or FAX your change to 937.890.0221. E-mail: [email protected]. Important notice: The post office will not forward copies of this magazine. PharmaVoice is not responsible for replacing undelivered copies due to lack of or late notification of address change. Advertising in PharmaVoice: To advertise in Pharma­­Voice please contact our Advertising ­Department at P.O.?Box 327, Titusville, NJ 08560, or ­telephone us at 609.730.0196. E-mail: [email protected]. Volume 11 • Number 2 Denise Myshko Managing Editor Pharmaceutical ­companies are ­beginning to rethink their approach to ­outsourcing. Robin Robinson Senior Editor M&A has been a ­common quick fix to build revenue in the ­industry, but the pharma ­industry needs to start seeking other solutions. Kim Ribbink Features Editor Highly skilled and ­educated staff are just one of the draw cards for companies looking to broaden their business in China. Carolyn Gretton Contributing Editor The biotech sector needs to reinvent itself by adopting a more ­collaborative approach to ­capitalize on ­emerging ­opportunities. Send your letters to feedback@pharma­voice.com. Please include your name, title, company, and business phone number. Letters chosen for publication may be edited for length and clarity. All submissions become the property of PharmaLinx LLC.

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