Patient-centric model for Pharma

The way the traditional models have been delivering value, having been in vogue for a while , will undergo sea change .Organisations would be pushed to drive leadership and the innovation teams to be more tightly coupled , and thus be able to propel new game changing business models over much larger horizons. Obviously every innovation starts with the customer. We have seen several examples of Apple shifting to whitespaces of creating devices more as a platform for apps than telephony , which incidentally slipped to being of secondary importance . The B2B models, fleet management shifts, going beyond product offerings , by helping enhance value of the customers of customer , are other examples.

One of the strong drivers of patient centric models more than amplifying value of the customers of customer , is the aspect of how traditional cost structures will get disrupted. Hence two major operational imperatives for Pharma would be to move to patient- centric models and increase the velocity of new drug development cycles to combat dynamic evolution of viruses.

With supply chain disruptions to increase manifold in this unprecedented era, this stream would have to be well trimmed. This triggers business model innovations, which may still be blue ocean . Leaves great opportunity on the table for Pharma.

Patient – centric models could be path breaking and game changing in that respect . This will eliminate several woes plaguing supply chains like distribution and warehousing complexity, imitation drugs vitiating fair play and huge movement -logistics. With advent of technology and high computing speeds force multiplying, the patient – centric model becomes closer to reality. The pandemic has shown early rays of the patient-centric model. For example the Remdesivir drug and similar such drugs were being sold by the manufacturers directly through an impromptu in- premises spoke extensions. Such paradigms require massive digitisation programs for better customer experience would become more relevant .

Pandemics would obviously trigger need for new drugs and more importantly be critical for taking it rapidly to patient This could entail patient involvement in the drug formulation getting higher traction. Phased trials of new drugs have shown patient involvement getting more accentuated in the new era . This cannot be without patient confidence and end-to-end tranparency of the processes. This is more like an ‘Ikeasation’ moment for Pharma. Patient has to be at the centre of drug development, trials and access mechanisms . The manufacturing world has already moved to solutions level of offerings , much beyond product offerings. That is an example business model innovation from the one industry. Caterpillar’s success story is one such shining example.

The redeeming aspect is the surgical intervention of the key supply chain components which are redundant and retard velocity of deliveries , getting rid of intermediaries who may not be adding value in the chain , (worse , may be eroding value) , reduce costs of drugs significantly making it affordable for a larger purpose of increasing longevity of mankind. At the end of the day drugs have to be accessible and affordable if we are to increase life expectancies.