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Navigant Consulting, Inc. (NCI) Identifies Expansion Strategies For Pharmaceutical Companies Facing A Maturing Market


10/19/2005 5:10:44 PM

SAN MATEO, Calif.--(BUSINESS WIRE)--April 7, 2004-- Report identifies barriers to near and long-term growth in the pharmaceutical market; recommends methods companies can use to manage business threats

The demand for healthcare products is ever-increasing, yet large pharmaceutical companies are struggling to expand, according to Navigant Consulting's (NYSE:NCI) Front Line Strategic Market Report(TM) analysts. In fact, the analysts also discovered that leading pharmaceutical players have posted much slower increases in earnings per share and net income in recent years.

In their recently concluded study entitled "The Changing Pharmaceutical Market: Strategies for Profitable Growth in a Maturing Market," the analysts have identified the factors that are causing this growth paradox and may continue to hinder the expansion of pharmaceutical companies, while also recommending several strategies companies can use to better position themselves to manage these factors.

Rigorous research by the analysts yielded the identification of several impediments to pharmaceutical company growth, including thin product pipelines, greater presence of generic competition, an uncertain regulatory environment and declining return on investment for sales and marketing efforts. However, the analysts were also able to identify a number of areas of potential expansion for pharmaceutical companies, including investment into biotechnology products and effective development of targeted therapeutics with smaller, but still profitable, potential. The analysts believe that for pharmaceutical companies to take advantage of these opportunities, they must adapt to this maturing industry by lowering their costs across all segments of their business while redefining their dependence on blockbuster business models.

"Larger pharmaceutical and biotechnology companies have been relying on a business model that emphasizes the development of blockbuster drugs," said Ashwin Singhania, Associate for Navigant Consulting's Front Line Strategic Market Reports. "Following this model, drug companies will find it increasingly difficult to ensure growth in terms of profitability, as there are only a limited number of products in their pipelines. Rather, companies should seek to develop and market products that are more innovative, even if the potential sales of the drug are lower than what most pharmaceutical companies currently expect. However, companies must recognize that this change does not come quickly or inexpensively. In order to fund this innovation, companies must be certain to maximize revenues from products they currently market."

For additional details, complimentary PDF sample pages, or to order "The Changing Pharmaceutical Market: Strategies for Profitable Growth in a Maturing Market," please contact Anil Patel of Navigant Consulting at 650.525.1500 x135.

About Navigant Consulting

Navigant Consulting, Inc. (NYSE:NCI) is a specialized independent consulting firm providing litigation, financial services, healthcare, energy and operational consulting services to government agencies, legal counsel and large companies facing the challenges of uncertainty, risk, distress and significant change. The Company focuses on industries undergoing substantial regulatory or structural change and on the issues driving these transformations. "Navigant" is a service mark of Navigant International, Inc. Navigant Consulting, Inc. (NCI) is not affiliated, associated, or in any way connected with Navigant International, Inc. and NCI's use of "Navigant" is made under license from Navigant International, Inc. More information about Navigant Consulting can be found at www.navigantconsulting.com.

Contacts

Navigant Consulting, Inc. Front Line Strategic Market Reports(TM): Eileen Crum, 650-525-1500 ext. 103 ecrum@navigantconsulting.com or

Public Relations: Brent Curry, 312-573-5668 bcurry@navigantconsulting.com


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