Global Pressures Force Industry to Rethink Role

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<p><strong>London &mdash; June 7</strong><br />A new report by independent market analysis firm Datamonitor highlights three key trends that will shape the pharmaceutical technology market in 2007 in the United States, Canada and Western Europe. </p><p>According to the report &ldquo;2007 Trends to Watch: Pharmaceutical Technology,&rdquo; translational medicine will drive adoption of robust data analytic solutions among other business intelligence (BI) technologies. </p><p>The report says the pharmaceutical industry&#39;s future prosperity also will depend on product life cycle management (PLM) technology investments taken sooner rather than later, while pressure to improve the effectiveness of sales and marketing will drive investments in customer-relationship management (CRM) technologies.<br /><br />&ldquo;A siloed approach to the adoption of technology, coupled with merger and acquisition (M&amp;A) activity over the years has left the majority of pharma organizations with some serious business and technological challenges ahead,&rdquo; said Markella Kordoyanni, Datamonitor pharmaceutical technology analyst and author of the study. &ldquo;As such, the industry will look to IT solutions to address some of those challenges and drive growth.&rdquo;<br /><br />Global pressures for safer drugs, as well as scientific and technological advances, are forcing the pharmaceutical industry to rethink the role of IT solutions during the discovery and development stages of the supply chain. </p><p>The shift toward translational medicine necessitates ways of integrating IT earlier in the product life cycle.<br /><br />The goal of translational medicine is to discover safer drugs. </p><p>Translational research requires exchanging project data and disease knowledge between scientists in the various stages of a drug project and especially bringing the learning of both successes and challenges of candidate drugs from the clinic back into preclinical discovery projects. </p><p>Technical and cultural challenges often prevent discovery and clinical departments from exchanging knowledge and possibly the biggest gap there is that between science and IT. </p><p>Datamonitor says technology vendors must recognize the shift toward translational medicine efforts that extend from pre-clinical all the way to post-marketing stages. </p><p>Datamonitor thinks vendors will have a major impact in this nascent field, delivering on its promise for more-effective and safer drugs.</p><p>With patent expiration looming, the pharmaceutical industry is looking for strategies to remain competitive by continuously developing new drugs and extending the indications of marketed drugs. </p><p>Streamlining product-development processes is now becoming a major priority for pharmaceutical companies looking to increase their market share. </p><p>Implementing the right life cycle-management strategy will allow a pharmaceutical company to survive and prosper by maximizing profitability throughout the lifespan of its products. </p><p>The types of PLM technologies that vendors offer must align with the customer&rsquo;s PLM strategy and will affect how the pharmaceutical PLM market evolves.<br /><br />As the development of a single drug requires the investment of hundreds of millions of dollars over 10 to 15 years, pharmaceutical firms are eager to invest in new technology solutions that will help them to execute a highly effective sales and marketing strategy. </p><p>The very core of the pharmaceutical industry lies in the analysis of experimental data from discovery through development and even the post-marketing phase. </p><p>Given the industry&rsquo;s inherent devotion to data, it is surprising that the pharmaceutical sector remains years behind other vertical markets in CRM.<br /><br />Pressures to improve profit margins and market share are driving pharmaceutical companies to revisit their CRM strategies, which also includes improving sales force effectiveness. </p><p>For the pharmaceutical industry, the greatest demand on CRM is the ability to cover multiple touch points across a diverse customer base (patient, providers and payers). </p><p>In this respect, the pharmaceutical industry is unlike any other, faced with a wide and varied array of customers, each of whom interacts to varying degrees and at various levels. </p><p>CRM vendors and pharmaceutical companies must understand how the industry will evolve beyond traditional sales and marketing strategies and have a holistic view of the CRM landscape.<br /><br />&ldquo;The sheer size and growth of the pharmaceutical market in the U.S. and Europe makes it an attractive market for technology vendors,&quot; Kordoyanni said. &quot;In 2005 alone, Datamonitor estimates Big Pharma and Biotech&rsquo;s 2005 total sales exceeded $330 billion. </p><p>&quot;Datamonitor forecasts pharmaceutical industry sales will increase at a modest 4.9 percent average annual increase between 2005-2011, although the forecast growth for the biotech market is markedly higher at 10.1 percent between 2005&ndash;2011. Clearly, the use of technology is an important part of enabling the continued growth of this market.&rdquo;</p>

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