ostrich

The ostrich has become a staple of many pharmaceutical science presentations of late, symbolizing an industry that is reluctant to change. Perhaps it could symbolize some of the more shortsighted pharma CEO's at this point in the 21st century. With all due respect, as CEOs face a tough balancing act today, I have a few questions for this elite group:

Business journalists lately have been writing of the demise of the U.S. pharma sector, with some describing it as going the way of the Big Three U.S automakers, and others seeing it as "despairing its future."

Did any of you catch that recent WSJ report on the negative impact of mass layoffs? OK, I know that M&A layoffs are different, but today brought the sad news that Pfizer/Wyeth will lay off 6,000 employees and close eight of its manufacturing plants in Ireland, Puerto Rico and the U.S.

I've always found one of the most evocative terms in the Toyota lexicon to be “gemba” ----the real place, or as it has more poetically been translated, “the place where truth will be found.”  The word already implies that you may have preconceived notions of what the truth is and need a reality check. What better way to define the workplace, whether that's a laboratory or a factory?

Has anyone missed the bold "Jaws" cover of Pharmaceutical Executive? In this feeding frenzy of M&A, Pfizer has been at the center of much discussion. So, many who might not otherwise have attended SOCMA’s luncheon yesterday flocked to hear a presentation by John LaMattina, former head of R&D at Pfizer and author of a new book. This is a very quick summary of points he made in his speech.

The blockbuster model is dying a very slow and painful death and there will be more collateral damage before it's all over. Early morning brought news that Pfizer might buy Wyeth Pharmaceuticals, including its biologics division, for $60 billion. 

Will a short-term financial quick fix steamroll a vibrant company, with all the inevitable layoffs and culture issues that will result?

The rumors can be put to rest, as it is revealed that Eli Lilly has agreed to purchase the company for $6.5 billion.

--PWT

There's been a lot of discussion lately about what the new generics model will look like, now that the "Ranbaxy model" has gone out of favor (see our recent article) and major generics manufacturers have begun partnering with major branded drugmakers (and vice versa) in an effort to create synergies and economies of scale. After decades of vitriolic competition between generic and branded, it seems like both sides are taking the "If you can't beat 'em, join 'em" route.

Dr Reddy's Laboratories, India's second largest pharma company to Ranbaxy, has been mentioned as a possible merger/takeover target. But maybe Reddy's has a better model in mind, one that broadens the focus of its products and services based upon the expertise it already has in house. After all, the manufacturer has amassed a huge pool of talent and expertise over the last few decades. The company has announced plans to capitalize on this intellectual capital by expanding the services that go along with the research and manufacturing it performs. It makes sense, given the fact that many multinationals are outsourcing these functions.

Reddy's may not always go it alone, but it will appear all the more attractive should a suitor come along.

--PWT

Friday will bring a new White Paper,  "The Continuing Evolution of the Pharmaceutical Industry: Career Challenges and Opportunities" by Michael Steiner et al, of RegentAtlantic Capital LLC.  that tackles a critical topic: job security for the senior-level professional in an industry that's undergoing major transition.

Instead of rehashing all the "transformations" going on within the industry, it correlates them to the individual pharma professional's job development to answer the questions: 

• What do I need to do to remain employable in this industry? 
• What are the key driving forces shaping the pharma industry job market?
• How can I manage my career to ride all these waves? 
• How can I manage my personal finances to weather the storm following a layoff?

Not too many of you will or could follow Peter Rost's path into creative writing, the ultimate question is:  will you be a specialist or an "athlete" with a broad set of capabilities and the range of experience that will allow you to manage complexity easily)? 

Warning:  Going too far in either direction probably won't pay off. 

We're posting excerpts from the study on PharmaManufacturing.com and KnowPharma.com, and will post the entire white paper (which will also accessible via www.regentatlantic.com) on Friday. 

These graphics are from the draft version of the report, which may differ somewhat from the final version coming out later this week (please credit the RegentAtlantic report fully if you use these!).

AMS