Project Management

Strategies For Improving Revenue And Margin Performance: The need For An Evolved Approach

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Executive Summary

Numerous market drivers are directly impacting the top-line growth and margins of life sciences companies. In the United States, payors are shifting costs to consumers, reducing health benefits, and mandating lower-cost therapeutic options to stem the rise in health care costs. These barriers to access are compounded by a rising tide of uninsured Americans. Globally, national health systems are negotiating coverage based on cost and excluding therapies for which health economic benefits are not clearly articulated. These market trends are having an enormous impact on revenue generation and growth. In the past, revenue was largely driven by innovation, coupled with product and portfolio growth. Marketing and Sales strategies were the drivers of product revenue growth, while positive R&D results, alliances, or acquisitions drove portfolio growth.

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