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Article: As blockbusters fade, Big Pharma "must change or perish," warns US analyst.
- Article from:
- Pharma Marketletter
- Article date:
- January 3, 2005
CopyrightCOPYRIGHT 2005 Marketletter Publications Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The business model of blockbuster drugs used by Big Pharma needs to be revisited, Sander Flaum of Flaum Partners has told the New York Society of Security Analysts' annual Healthcare Industry Conference. Many US seniors will use generics and over-the-counter drugs when the new Medicare prescription drug law takes effect in 2006, and formularies will be tighter after 2005. For Big Pharma it is "change or perish," he said; no- one wants to pay for a blockbuster if a generic is available.
The industry's best R&D direction will be treatments for "silo" diseases such as AIDS, cancer and macular degeneration, which have high gross margins and little competition, he ...