Thursday, March 19, 2015

Will biotech research cuts hurt advancement?

Around the world, biotech and big pharma are trying to manage their costs and some are beginning to cut research jobs, which can slow finding new treatments. This is a normal problem for any business, if you have to cut back, some things just don't happen.

When I first joined the business world, I worked for a company that was facing a round of layoffs. To this day, I clearly remember a co-worker saying to me "they can't lay me off as they won't have someone to do my job function". Well, guess what? The company decided not to have that job function any more and she was let go.

Businesses need to change and evolve to prosper. If they do not, they will no longer be in business.

I agree that biotech and big pharma need to make cuts and adjustments to continue to prosper. But they also need to take a look at their profits and their pricing. I honestly believe that biotech and big pharma need to review their entire financial model to adapt to the changing economy.

The insurance and medical care industries are reeling from the huge burden of costs from newly developed drugs and is really struggling to pay the bills. And the pharma companies are worth billions as the patients go bankrupt.

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