The pharmaceutical industry is facing uncertainty as President Donald Trump’s threats of imposing 200% tariffs and restrictive pricing policies loom large. Companies like Roche and Johnson & Johnson have earmarked billions of dollars to set up and expand manufacturing in the U.S., but the implementation will take years. With the exact details of the tariffs and pricing policies still unclear, these large-scale efforts carry significant risks.
A recent survey conducted by the Deloitte Center for Health Solutions revealed that two-thirds of life sciences executives expected some impact on their businesses due to the potential tariffs and pricing policies. While companies are engaging in strategic planning and scenario analysis, most are yet to execute operational plans.
According to Jay Bhatt, managing director of the Deloitte Center for Health Solutions, pharmaceutical companies are transitioning from planning to action, albeit slowly. While some companies, like Eli Lilly, have taken steps to boost U.S. manufacturing and anticipate policy changes, there is a need for more adaptive strategies to navigate the uncertainties effectively.
Bhatt suggests a shift in organizational design towards what he calls a “quantum corporation” to prepare for potential disruptions. This approach involves building resilience as an organizational muscle to navigate dynamic times by operating in parallel states of readiness rather than adopting a rigid wait-and-see approach.
Drawing inspiration from quantum physics, the concept of a quantum corporation emphasizes agility and adaptability in the face of regulatory and political changes. Companies need to integrate geopolitical, trade, pricing, and supply chain variables into their strategies and continuously recalibrate their approach based on real-time data.
In today’s complex environment, Bhatt emphasizes the need for continuous learning and organizational agility to navigate regulatory and trade uncertainties effectively. An agile approach may be the key to surviving and thriving in the ever-evolving pharmaceutical landscape.
This article highlights the importance of proactive planning and adaptability in the pharmaceutical industry to mitigate the impact of potential tariffs and pricing policies. By embracing a quantum corporation model, companies can build resilience and agility to navigate uncertainties and thrive in a rapidly changing landscape.
