The global head of KPMG's life sciences practice, Chris Stirling, has suggested that in order to maintain profits and a healthy industry, the Pharma sector needs to make big changes to its business model.
According to the firm's research, return on R&D expenditure has halved in the past 20 years and the earnings ratios on products have also fallen dramatically.
Commenting on the findings Mr. Stirling
said "The business model that has powered the pharma industry over the last few decades is showing signs of fatigue - costs are skyrocketing, breakthrough innovation is ebbing, competition is intense and sales growth is flattening".
highlights a lack of focus on the patient and that there is instead an over-reliance on blockbuster products which as various reports have shown, are no longer giving the return on investment they once did.
talked about changing the system from a "value chain" to a "value ecosystem" whereby many aspects of a business are wrapped around the patient at its core.
"If the pharmaceutical industry is to capitalise upon this potential, it must innovate to develop new business models and find better ways to collaborate across the healthcare ecosystem - all the while putting the patient at the heart of everything it does," concluded Mr. Stirling