Chairman & CEO of Chugai Pharmaceutical Co., Ltd, one of leading pharmaceutical companies in Japan within the Roche Group, Mr. Osamu Nagayama provided an enriching insight into the changes in global healthcare environment and shared the company’s strategies in cope with the rising challenges in his featured speech.
The global pharmaceutical market is estimated to reach around 1,200 billion USD in 2016. Promising as it might appear, there exists five global issues:
i) the pressure to increase volume of medicines
ii) an aging society and its changing structure with an existing huge unmet medical needs
iii) increasing R&D expenditure versus declining success rate in getting new drugs available
iv) generics still driving emerging markets
v) a growing biopharmaceutical trend and growing personalized healthcare need
The whole industry, according to Mr. Nagayama, should think about contributing to i) the increase of insurance coverage, ii) industrial capacity building, and iii) technology transfer. Moreover, effective treatment for diseases such as NTD and AIDS still need to be developed, and this demands further consistent R&D input of the whole industry.
It is thus interesting to think about a way for pharmaceutical companies to maintain a sustainable profitability level, while at the same time working for the well-being of the whole society. This is actually what Chugai pursues: by shifting to products and services of higher value, personalizing healthcare and creating innovative drugs, the company is doing good to all stakeholders and this will in turn help keep its competitive edge.
by WU Hao,ESSEC Business School
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