Bristol-Myers Squibb is a mega pharmaceutical that spends over $4billion annually in R&D for developing and testing the next generation of drugs. We had the privilege of listening to the head of their virology department in Argentina.
Two points of note: they have no mechanism for protection of their intellectual property, and they never know if they will make any money on their investment. Imagine spending billions of dollars with no end result guarantees?
I wish that more American companies would take a long-term approach to planning and business success. A number of my clients are so focused on quarterly results that they make future sacrifices for short-term gain. Myopic thinking is the bane of business success. And then they wonder why they fail.
The group erupted in laughter when we were quizzed and learned that the number one drug sold worldwide is Cialis – used for the treatment of erectile dysfunction. The funny thing is that Eli Lilly is laughing all the way to the bank, as only 40 percent of the people who use the drug really need it. More power to the consumer.
Good pharma thinking is about improving quality of life, not just curing disease.
Good pharma business is about long-term thinking, with massive payoffs.
About Hemant Rustogi