This report builds on Synergos expertise in the healthcare sector, on experts’ interviews and on publicly available information. This study highlights the opportunities, the opportunities, challenges, and the key levers for global pharmaceutical companies to generate a social impact for the Base of the Pyramid (BOP). The report presents a set of examples of strategic partnerships and innovative business models in emerging markets that highlights key levers for social impact.Healthcare companies have historically concentrated their sales efforts on high-income countries. Poor or vulnerable populations in low and middle income countries are often left with significant unmet health needs.
We have identified eight key levers to service the Base of the Pyramid populations on which new corporate expertise is required:
1. New pharmaceutical product: developing new products to respond to local health needs
2. Different pricing model: new pricing based on reengineered products, adapted packaging to reduce costs and tiered pricing strategy
3. New distribution model: innovating with distribution channels and partners to ensure that quality products reach underserved patients
4. Broad-based partnerships: engaging in local and global partnerships with key stakeholders
5. Education / training for behavioral change: training local people and healthcare professionals to improve the access of healthcare services
6. Technological innovation: innovating in information technology to facilitate communication around treatment information and access to treatments
7. Community-based outreach: investing resources to create health-seeking behavior among poor or vulnerable populations
8. Advocacy: raising awareness among key leaders to influence public policies and resource allocation decisions and to increase projects’ scale
Those new operating models can be developed under three corporate approaches: Business led, CSR and Philanthropic approach.