Pharmaceutical industry changes
McGahan’s framework starts by defining the industry. The US pharma industry is the world’s largest pharma market. We define the market as large pharma companies who sell and distribute their products in the US. This includes both US-based and non-US-based companies, who all share common buyers. The second step in determining the nature of an industry’s evolution is to identify and define the industry’s core assets and activities that have traditionally generated profits within the business. One core activity for the US pharma industry is the Research and Development (R&D) process. Traditionally, large pharma companies have been well-known for their innovative and systematic ways of developing compounds to meet unmet medical needs. Closely tied to the R&D process is the regulatory approval process. The process by which pharma companies promote and market their products is also a core activity. Physician-detailing is a key step in the selling process.