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    The Rise of Patient Centricity in the Pharmaceutical Industry

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    Genre
    Thesis/Dissertation
    Date
    2019
    Author
    Crouthamel, Michelle
    Advisor
    Mudambi, Susan
    Committee member
    Mudambi, Ram, 1954-
    Atasoy, Hilal
    Hill, Theodore L.
    Department
    Business Administration/Strategic Management
    Subject
    Business Administration
    10-k Analysis
    Firm Performance
    Patient Centricity
    Personalized Medicine
    Pharmaceutical
    Strategic Orientation
    Permanent link to this record
    http://hdl.handle.net/20.500.12613/2739
    
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    DOI
    http://dx.doi.org/10.34944/dspace/2721
    Abstract
    Despite a decade of public and private efforts to promote patient centricity in healthcare, there is still considerable ambiguity and skepticism regarding the concept and its business impact in the pharmaceutical industry. In this research, a novel methodology is developed to quantify firms’ strategic orientation using public 10-K reports. The Strategic Orientation Ratio (SOR) was developed and first validated to examine customer centricity for 9 non-pharmaceutical companies. The SOR is then extended from customer centricity to patient centricity, and it was applied to measure the extent of patient centricity in 10 multinational pharmaceutical firms. The method was successfully validated by identifying the strategic orientation of non-pharma firms such as Walmart, Apple, and Amazon. Next, by the same method, the extent of patient centricity is quantified in 10 big pharmaceutical companies for 2005-2015. This revealed the extent to which patient centricity exists in pharmaceutical companies, and how this has changed over time. The combination of an expressed patient-centric strategic orientation, personalized medicine (measured by oncology products), and patient access (measured by sales) is shown empirically to have a significant positive effect on firm performance. This implies that not only is patient centricity “the right thing to do,” it can also be a viable model for pharmaceutical firm competitiveness.
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