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Large rise in pharma spend on apps and web
1. Large rise in pharma spend on apps and web
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.
2. The full report (pdf) is available from Ernst & Young.
Published: 17/02/2011
Content Area: Pharmaceutical industry articles
Article type: Healthcare news
Source:
http://www.pmlive.com/pharma_news/large_rise_in_pharma_spend_on_apps_and_web_261141
“The investments within healthcare especially within the web technology and mobile computing
verticals have gone up manifold since this report came out in 2010. There is a lot of convergence of
existing technology, establishment of newer standards and measuring systems have given the entire
spectrum of healthcare technology a tremendous boost”, remarks Shriram Parthasarathy – Manager
Marketing and Strategic Alliances Orra Health