Please login to the form below

Not currently logged in
Email:
Password:

Large rise in pharma spend on apps and web

A report shows that in 2010 pharmaceutical companies increased their investment in digital, including mobile phone apps, social media and educational websites, by 78 per cent

Progressions: Building Pharma 3.0, a report published by Ernst & Young, shows that in 2010 pharmaceutical companies increased their investment in digital, including mobile phone apps, social media, educational websites and wireless devices, by 78 per cent. 

The report defines "Pharma 3.0" as a shift by the pharmaceutical industry from its traditional role of producing new medicine to the evolution of a new role demonstrating improvements in health outcomes and creating innovative new business models.

A substantial number of non-pharma companies have collaborated with industry on these initiatives. Data from the report estimates that at least $20bn has been invested in the Pharma 3.0 business model by non-pharma, in comparision to significantly lower financial input from the pharma companies themselves.

"New entrants to the healthcare industry are clearly committing much more to business model innovation than pharma companies," said Carolyn Buck Luce, global pharmaceutical leader at Ernst & Young. 

"The companies that succeed in this new healthcare ecosystem will do so by developing innovative outcomes-focused offerings through structured, systematic and scalable approaches to business model innovation. Just as importantly, pharma companies should demonstrate to new players in the healthcare space why the unique insights they can provide related to patient outcomes will make them indispensable partners."

A large proportion of pharma's 3.0 investments have been in mobile health technology – particularly smart phone apps. The report shows that by 2010, investment in mobile apps accounted for 50 per cent of all new initiatives, an increase of 34 per cent compared with the period 2006 to 2009.

The first mobile apps to be developed by pharma were mostly focussed on diabetes management. By 2010, smart phone apps from pharma were available in an estimated 14 disease areas with oncology represented more than any other area and accounting for 15 per cent of all initiatives.

The full report (pdf) is available from Ernst & Young.


17th February 2011

Share

Subscribe to our email news alerts

PMHub

Add my company
Grace Communications

We’re an independent healthcare brand communications agency with a host of awards that speak to our success. Combining razor-sharp insights...

Latest intelligence

The importance of accelerating clinical trial diversity
Diversity shouldn’t be an afterthought – it’s an investment in the credibility of scientific endeavour...
Digital Opinion Leaders: The Role of Influencers in Medical Communications
There are many informed, knowledgeable HCPs who talk about a disease state online, but not all of them are influencers. This paper explores who digital opinion leaders are and how...
Creating Hope Though Action – World Suicide Prevention Day
At Mednet Group, we believe that actions speak louder than words. That's why we're getting behind this year's Suicide Prevention Day campaign of 'creating hope through action'....