Pivot Examples- Pharmaceutical Industry

Goals

Identify examples from the pharmaceutical industry of the following ten pivot types: customer segment pivot, zoom-in pivot, zoom-out pivot, customer need pivot, platform pivot, business architecture pivot, value capture pivot, engine of growth pivot, channel pivot, and technology pivot. Each example should explain how and why the companies pivoted and what the company was like before. The examples should be no older than 8 years.

Early Findings

Customer Segment Pivot

  • A customer segment pivot is needed when the company realizes that the product its building solves a problem for customers, just not the customers it had originally targeted.
  • A failed cancer drug, farnesyltransferase inhibitor (FTI), was used to treat children with the rapid-aging disease Progeria in 2012.
  • The farnesyltransferase inhibitor, called lonafarnib, is manufactured by Merck & Co.
  • The success with the repurposing of the drug led Merck & Co. to expand its partnership with another pharmaceutical company, Eiger BioPharmaceuticals Inc.
  • The drug only received FDA approval in December 2018, so it is still early to see the effect it may have on Merck and Co.

Proposed next steps:

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Based on our initial hour of research, we found that examples of the pivot types in the pharmaceutical industry were not easy to find. We recommend continuing our research by devoting a request to each of the ten pivot types (customer segment pivot, zoom-in pivot, zoom-out pivot, customer need pivot, platform pivot, business architecture pivot, value capture pivot, engine of growth pivot, channel pivot, and technology pivot). For each pivot, we would identify 2-3 examples within the pharmaceutical industry that were less than 8 years old. We would also explain how and why the companies pivoted and what the company was like before. By finding more than one example of each pivot, we would ensure that the examples suited the request's criteria.
Alternatively, we could launch five requests and try to identify one example each for two pivot types per request. For each example, we would explain how and why the companies pivoted and what the company was like before. The examples would be less than 8 years old.