Robert J. Franco, PhD

For decades, blockbuster product development has driven the pharmaceutical industry. Under that model, a handful of products-and, in some cases, a single product-produce the lion's share of revenue and dictate a company's strategic direction. As companies get larger, they rely more and more on blockbusters to sustain their growth. The high cost of developing major, successful drugs only reinforces the need to focus on blockbusters. It's a vicious cycle that remains firmly in place for most Big Pharma.

Given the colossal revenue generated by just one blockbuster drug, it's no surprise that R&D always finds its way to the top of management's agenda. But now more than ever, pharmaceutical companies can't thrive on discovery alone. Price pressure from the public and private sectors drives companies to create savings through operational efficiencies. One of the biggest areas for financial gain"better management of capital assets"is often overlooked.