The DNA of Disruptive Innovation

For the past 30 years pharma has thrived on big molecule breakthroughs and savvy marketing, but that model has been challenged by an environment of skyrocketing health care spending, rising development costs and intensifying competition from generics. Clearly, pharma needs a way to rethink its business—change its DNA—and re-invent and renew itself by rethinking the entire end-to-end value chain.

July 22 2013 by Jennifer Pellet


The Big Five

A.T. Kearney’s Chris Paddison outlined five factors driving disruptive change in health care.

  1. The current model of health care in the U.S. is unsustainable. “We simply don’t have enough money to continue the way we’ve been going, and that will drive inevitable system changes,” asserted Paddison.
  2. Government’s role is expanding. Long a primary payer and regulator of the industry (thanks to Medicaid and Medicare), the U.S. government is poised under the Affordable Care Act (ACA) to take on an even larger role.
  3. The industry is moving toward more patient-centric healthcare. The ACA’s mandates around integrated care and accountability will, in turn, “require greater transparency, IT integration and more cooperation and coordination among players in the system,” explained Paddison.
  4. Global growth opportunities are emerging. Pharmaceutical and medical device companies have an opportunity to expand market share overseas.
  5. Innovation continues to accelerate. Advances in fundamental science—biology, computer science, computational science—will continue to drive the development of new health care products.

Roundtable Participants

Brett Coleman, Co-Founder, Waypoint Health Innovations • Kenneth L. Davis, M.D., CEO, The Mount Sinai Medical Center • J.P. Donlon, Editor-in-Chief, Chief Executive • Donna Drummond, Chief Administrative Officer, North Shore-LIJ Health System • Michael P. Gutnick, SVP and CFO, Memorial Sloan-Kettering Cancer Center • Zaki Hosny, CEO, Motif Biosciences • Ashish Kachru, CEO, Altruista Health • Rajeev Kapoor, Partner, A.T. Kearney • Chris Paddison, Partner, A.T. Kearney • Daniel Regan, Chief Commercial Officer, Intercept Pharmaceuticals • Michael Wise, Partner, A.T. Kearney