Who We Are
Menacure Healthcaretraditional business model hinges on the ability to identify promising newmolecules and promote them with an extensive marketing and sales presence. In thepredominant version of this model, a single company may employ contractors to supplementits own efforts, but it seeks to generate profits on its own. In essence, it pursues what mightbe called a “profit alone” path.
But,now, the strategy of singlehandedly placing big bets on a few molecules, marketing themheavily and turning them into blockbusterswill not suffice. As J.P. Garnier, former chiefexecutive of GlaxoSmithKline, recently pointed out, it is a “business model where you areguaranteed to lose your entire book ofbusiness every 10 to 12 years”.More importantly still,it is a business modelthat will no longer meet the market’s needs. Management guru ClayChristensen has convincingly demonstrated how disruptive innovations in various industrieshave dismantled the prevailing business model, by enabling new players to target the leastprofitable customer segments and gradually move upstream until they can satisfy thedemands of every customer–at which point the old business model collapses.
Pharma is currently undergoing just such a period of disruptive innovation. Most medicineswill be paid for on the basis of the results they deliver–and since many factors influenceoutcomes, this means that it will have to move into the health management space, both topreserve the value of its products and to avoid beingside linedby new players. If it is to makeground breakingnew medicines for which governments and health insurers are prepared topay premium prices, it will also have to build the relationships and infrastructure required toensure that it can get access to the outcomes data they collect. In short, the rules of the gameare shifting dramatically. And, as Michael G. Jacobides, Associate Professor of Strategic andInternational Management at the London Business School, notes, when an entire “industryarchitecture” is transformed, it is not only “who does what” that changes, it is also “who takeswhat”.4 By 2020, no pharmaceutical company will be able to “profit alone”. It will, rather, haveto “profit together”, by joining forces with a wide range of organisations, from academicinstitutions, hospitals and technology providers to companies offering complianceprogrammes, nutritional advice, stress management, physiotherapy, exercise facilities, healthscreening and other such services.