Center for International Business

At Tuck conference, top healthcare figures discuss globalization's effects on drug pricing and costs

FOR IMMEDIATE RELEASE—January 17, 2007

CONTACT: Kim Keating - 603-646-2733

Hanover, N.H.—Top figures from the pharmaceutical and biotechnology sectors came to the Tuck School of Business at Dartmouth on January 11 to speak with an overflow crowd at the school's first annual international healthcare conference, titled "The Globalization Debate: Factors in Drug Cost and Pricing." Led by keynote speaker Peter Dolan T'80, former CEO of Bristol-Myers Squibb, participants examined how globalization is changing the pricing and sourcing decisions of biopharma companies and the structure of the companies themselves.

"Globalization can't be about one-size fits all, and it's not necessarily about infinite levels of customization. We've got to find the right balance in each case, and act. It is about focus and specialization, and about a continuing sense that in partnerships—of all kinds and in all countries—lies strength and therefore purpose," said Dolan. "There isn't any one answer for the industry of how to deal with future challenges in the global arena, but we do know that there are opportunities to make a difference as responsible corporate citizens and to make a difference as healthcare providers."

Dolan outlined the affects of globalization on drug production, research and development, management teams, and marketing, and discussed emerging trends and the growing convergence amongst different healthcare models around the globe.

"I think we are seeing a convergence of what is happening in the U.S. and outside the U.S.—by that I mean we are becoming more like them and they are becoming more like us...we are starting to see in Canada the possible emergence of private health insurance coverage. And in Europe, we're seeing growing signs that patient advocacy—long standard and expected in the U.S.—is taking hold across the continent, particularly in the southern countries and the former Soviet Republics."

Hosted by Tuck's Center for International Business and the Tuck Healthcare Club, the conference brought together students, alumni, faculty, and practitioners to tackle questions at the cutting edge of international healthcare debate. The conference began with a luncheon keynote address by Dolan, followed by separate panel discussions on two topics. The first, moderated by Professor Don Conway, director of the Tuck Healthcare Initiative and the MD/MBA Program at Dartmouth, explored the challenges of drug pricing in global markets with representatives from Genzyme, sanofi-aventis, Pfizer, and IMS consulting. The second panel, moderated by Dartmouth Medical School Dean Stephen Spielberg, examined opportunities to reduce drug costs in the global economy with representatives from the Center for the Study of Drug Development at Tufts University, PRTM, and Sepracor.

Throughout the day, a range of other topics were discussed, including: In the race to develop new drugs, do global companies have a competitive edge? How can companies take advantage of emerging countries to reduce drug development costs? Is the industry headed for a truly global model of development and production? What unique barriers might they face in attempting to offshore product development and what are the prospects for this type of activity in the future? Biopharma companies operate in a world where payment systems can vary dramatically by country. Is this situation sustainable in the face of increased integration among economies and societies across the globe? How might payment systems change over time?

The conference was sponsored by the Dickey Center and sanofi-aventis as well as Genentech and McKinsey & Company.

Founded in 1900, Tuck is the first graduate school of management and ranks consistently among the top business schools worldwide. Tuck remains distinctive among the world's great business schools by combining human scale with global reach, rigorous coursework with experiences requiring teamwork, and valued traditions with innovation.