Life Sciences and Pharmaceuticals: Business Models and Revenue Streams
Description
This subject explores the diverse business models employed in the pharmaceutical and life sciences industry, including traditional pharmaceutical sales, licensing agreements, biosimilars, value-based contracts, and emerging digital health revenue streams. IT professionals will understand how revenue is generated and how technology supports various monetization strategies.
Learning Objectives
Upon completing this subject, IT professionals will be able to: identify primary business models in pharmaceuticals including product sales, licensing, and partnerships; understand revenue streams from branded drugs, generics, biosimilars, and over-the-counter products; analyze value-based contracting and outcomes-based pricing models; recognize the role of intellectual property and patent strategies in revenue generation; evaluate emerging business models including digital therapeutics, precision medicine, and patient services; and design IT systems that support pricing analytics, contract management, and revenue optimization.
Topics (9)
This topic covers the consumer health business where pharmaceutical companies market products directly to consumers through retail channels. OTC products include pain relievers, cough/cold medications, vitamins, and skincare. The business model relies on brand recognition, mass marketing, and retail relationships rather than physician prescribing. IT systems support consumer analytics, retail...
This topic covers the consumer health business where pharmaceutical companies market products directly to consumers through retail channels. OTC products include pain relievers, cough/cold medications, vitamins, and skincare. The business model relies on brand recognition, mass marketing, and retail relationships rather than physician prescribing. IT systems support consumer analytics, retail partnerships, and omnichannel marketing.
Show moreThis topic covers the emerging digital therapeutics business model where software applications deliver evidence-based therapeutic interventions. Digital therapeutics treat conditions like diabetes, substance abuse, and mental health. They may be prescribed alongside or instead of traditional drugs. Business models include prescription digital therapeutics covered by insurance, direct-to-consumer subscriptions, and B2B...
This topic covers the emerging digital therapeutics business model where software applications deliver evidence-based therapeutic interventions. Digital therapeutics treat conditions like diabetes, substance abuse, and mental health. They may be prescribed alongside or instead of traditional drugs. Business models include prescription digital therapeutics covered by insurance, direct-to-consumer subscriptions, and B2B enterprise licensing. IT systems are the product itself.
Show moreThis topic examines the traditional pharmaceutical business model where companies invest heavily in R&D to discover novel drugs, obtain patent protection (typically 20 years), secure regulatory approval, and generate substantial revenue during the exclusivity period. Blockbuster drugs generate over $1 billion annually. IT systems support portfolio management, patent lifecycle management,...
This topic examines the traditional pharmaceutical business model where companies invest heavily in R&D to discover novel drugs, obtain patent protection (typically 20 years), secure regulatory approval, and generate substantial revenue during the exclusivity period. Blockbuster drugs generate over $1 billion annually. IT systems support portfolio management, patent lifecycle management, and competitive intelligence.
Show moreThis topic covers the generics business model where companies produce bioequivalent versions of off-patent drugs at significantly lower costs. Generic manufacturers leverage economies of scale, efficient manufacturing, and rapid market entry following patent expiration. IT systems support regulatory filing management, competitive intelligence on patent expirations, and supply chain optimization.
This topic examines biosimilars, which are highly similar to approved biologic reference products. Unlike generics, biosimilars require extensive analytical, preclinical, and clinical studies to demonstrate similarity. The market is growing as biologic patents expire. IT systems must manage complex manufacturing data, comparability studies, and regulatory submissions that differ from both...
This topic examines biosimilars, which are highly similar to approved biologic reference products. Unlike generics, biosimilars require extensive analytical, preclinical, and clinical studies to demonstrate similarity. The market is growing as biologic patents expire. IT systems must manage complex manufacturing data, comparability studies, and regulatory submissions that differ from both innovator biologics and chemical generics.
Show moreThis topic covers licensing and partnership models where pharmaceutical companies share risks and rewards. Biotech companies may out-license their discoveries to larger pharma partners for development and commercialization in exchange for upfront payments, milestone payments, and royalties. Co-development partnerships share costs and revenues. IT systems support deal management, milestone tracking,...
This topic covers licensing and partnership models where pharmaceutical companies share risks and rewards. Biotech companies may out-license their discoveries to larger pharma partners for development and commercialization in exchange for upfront payments, milestone payments, and royalties. Co-development partnerships share costs and revenues. IT systems support deal management, milestone tracking, and royalty calculations.
Show moreThis topic examines innovative pricing models where payment is linked to clinical outcomes rather than volume. Examples include outcomes-based contracts where manufacturers refund payers if drugs don't meet effectiveness targets, indication-specific pricing, and performance-based risk-sharing agreements. IT systems must capture real-world evidence, track patient outcomes, and manage complex contract terms.
This topic examines specialty pharma business models targeting rare diseases, oncology, and complex chronic conditions. These medicines command premium prices due to limited patient populations, high unmet need, and clinical complexity. Business models include orphan drug designations, hub services for patient support, and specialty pharmacy distribution. IT systems manage patient...
This topic examines specialty pharma business models targeting rare diseases, oncology, and complex chronic conditions. These medicines command premium prices due to limited patient populations, high unmet need, and clinical complexity. Business models include orphan drug designations, hub services for patient support, and specialty pharmacy distribution. IT systems manage patient registries, support programs, and reimbursement assistance.
Show moreThis topic examines patient support services that pharmaceutical companies provide to facilitate medication access and adherence. Services include financial assistance programs (copay cards, patient assistance programs), nurse educators, injection training, specialty pharmacy coordination, and adherence monitoring. While not direct revenue sources, these programs protect revenue by overcoming access barriers and...
This topic examines patient support services that pharmaceutical companies provide to facilitate medication access and adherence. Services include financial assistance programs (copay cards, patient assistance programs), nurse educators, injection training, specialty pharmacy coordination, and adherence monitoring. While not direct revenue sources, these programs protect revenue by overcoming access barriers and improving persistence. IT platforms manage patient enrollment, benefits verification, and program delivery.
Show more