Strategic next steps in molecular medicine for healthcare companies

Healthcare markets are undergoing fundamental changes. These changes come from a variety of converging causes, particularly the rapidly increasing role of molecular medicine and diagnostics, the pressure on costs, new technologies and the evolution of patients into consumers. Traditional healthcare companies that wish to succeed in the future will have to break out of past acquisition practices and business models. These companies will need to build new skills and capabilities in multiple areas that are not currently part of their strengths and strategic perspectives. Changes to the status quo are often viewed by incumbents as threats when they might be seen as opportunities. This article describes reasons for slow change and the difficulties large firms face in embracing changing markets. The authors identify and discuss multiple areas in which healthcare firms will have to invest in order to take advantage of new science and markets. Companies now have opportunities to intelligently invest small amounts (small compared with large acquisitions) to build key skills and knowledge, and the potential to lead as new, profitable and long-term healthcare markets emerge.