Changes in the Market
Pharmaceutical companies with a large percentage of the market-share have historically been much further ahead than smaller competitors. This is down to their larger budget and significantly bigger Research and Development (R&D) capabilities. However, in an interview with pharmaphorum.com, Indegene’s Vice President Guarav Kapoor highlights how smaller companies can capitalise on their competitor’s growing ‘’unsustainable’’ business practices.
‘‘[…] based on the pressures we’ve seen from a pricing point of view […] we think that big pharma will have to reinvent itself. […] the cost of sales is extremely high, between 20% and 30% in the traditional rep-based model.’’
This old-fashioned sales model needs to be replaced with an artificial intelligent (AI) lead platform says Kapoor, in an attempt for new biotech companies to ‘leapfrog’ the competition and secure their market-share. Indegene have created a platform that uses an ‘omnichannel ecosystem’, which is a single platform that can provide the best option for purchase. It uses ‘’advanced analytics for customer segmentation, targeting and then building sequencing, and predictive analytics to drive certain cohorts for prescription’’ continues Kapoor.
Using such a platform, and varying commercial strategy can be difficult for big pharma to endorse. Companies which have functioned in a certain way for decades are less likely to take the risk. Indegene are instead finding more traction with smaller companies which are eager to experiment. They can’t compete with big pharma’s significant cash supply for product launches so Kapoor informs that ‘‘stretching their dollars is vital’’ for success.