How can pharmaceutical companies develop inclusive business models that tap the growing market for pharmaceuticals in developing and emerging countries, enabling low-income patients access to quality medicines at affordable prices? Bringing Medicines to Low-Income Markets (pdf, 3MB), released this week, provides a guiding framework to answer this question.
The report is built around a guiding framework called “4As +1”, used to help companies think about new approaches in creating a compelling value proposition for low-income patients
The 4 As refer to acceptance, awareness, availability, and affordability – making the case that companies must create products patients find acceptable and are aware of (and that hold easily understandable benefits), and which are both available and affordable. The fifth A refers to “other actors”, as business models in low-income environments often benefit from close collaboration with other, sometimes unusual partners in the health ecosystem, in view of ensuring that the correct high-quality product reaches those in need in an appropriate and effective way.
The report includes several case studies illustrating promising approaches from companies such as Bayer HealthCare, Novartis, Pfizer, GSK, Novo Nordisk, Sanofi, and Abbott. In addition, it includes tips for strategy and internal organization as well as an extensive support directory in the appendix, which provides a list of relevant organizational contacts and pointers to further reading.
The study builds on a database of over 110 existing business models or business model components in the sector, in addition to over 30 interviews with experts from pharmaceutical companies, health-related NGOs, international organizations, etc.
Bringing Medicines to Low-Income Markets was commissioned by the German Agency for International Cooperation (GIZ) on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ). The lead authors were Solveig Haupt and Aline Krämer of endeva, an independent institute building, sharing and applying enterprise solutions to development challenges. Additional project partners were Sanofi, a leading company in the healthcare sector, and PlaNet Finance Deutschland e.V., an expert organization in the area of microfinance.
The report served as a basis for a two-day workshop in Berlin on 23-24 January, and was formally launched at a Base of the Pyramid Sector Dialogue, where Gudrun Kopp, Parliamentary State Secretary to the BMZ, delivered the keynote speech.