This report is probably the first ever to look at replicable social healthcare models around the world in such depth. It assesses over 900 healthcare programmes, particularly looking at how suitable they are for scaling through investment. It’s produced by GlaxoSmithKline and the International Centre for Social Franchising and they are calling partners to join a working group to develop a healthcare knowledgebase, spreading proven innovations and best practice.
GlaxoSmithKline (GSK) has a long-standing reputation for excellence and innovation within the global pharmaceutical industry. Not only has GSK been a leader in traditional pharmaceutical markets, but CEO Sir Andrew Witty clearly acknowledges that the future growth of the firm and the industry lies more with increasing emerging market customer bases and sales rather than continued reliance on “blockbuster” drugs.
The Developing Countries and Market Access (DCMA) team’s mandate is to grow the size of GSK’s customer base in the 50 poorest countries in the world. Currently, these types of markets have less than 5% market penetration by Western pharmaceutical companies, presenting large opportunities for social impact as well as sales and revenue growth.
This report was commissioned by GSK’s DCMA team with the objective to identify and evaluate innovative healthcare delivery models for the Base of Pyramid (BoP) that have the potential for significant social benefit and long term commercial returns. The report also provides an overview of the healthcare innovation ecosystem in developing markets together with insight into customer behaviour, brands, supply chains and what kinds of in-vestments need to be made to create impactful, scalable, sustainable health-care delivery programs.
At the outset we expected to find a wide diversity of healthcare delivery innovation across the world, a high demand for investment to support replication and a prevalence of models targeting the BoP. In fact, what we found was numerous early stage or obviously non-scalable programs and that the high quality programs are already well funded by an increasingly competitive investment community. Whilst there are many programs targeting the BoP, the BoP itself needs to be considered in multiple sub-segments and that the focus for commercial programs tends to be the strong emerging middle class.
However, there are significant opportunities and enthusiasm amongst a number of developed programs for strategic partnerships with large pharmaceutical companies and other large-scale commercial organisations in order to drive scale, profitability and impact.