People would rather die than change.

The evidence is everywhere. People continue with unhealthy behaviors and lifestyles in the face of overwhelming evidence of the deadly consequences. Is this sentiment true of companies as well?

For the pharmaceutical industry, 2007 will clearly be a year of change. A different landscape will evolve as the new Congress is sworn in, pressure on the FDA mounts, and regulations, technology and markets continue to evolve. These changes are usually discussed in a negative light – the additional regulatory burdens placed on the industry, disincentives for continued R&D investment, or increased costs.

However, with change comes opportunity, and I would prefer to look at this evolving environment in a positive way. What we are seeing – and will continue to see - is the need for continuous transformation of the industry as it grows and increases its visibility and prominence in our society. The proposed changes to pricing, product security, and other legal/regulatory frameworks will create a need to develop new strategies and re-evaluate core business practices. Among the areas of opportunity are:

Emergence of new business models: New approaches will emerge for drug R&D, strategic partnerships, distribution models, and globalization of key operations to reflect changing economics and market dynamics. Business strategists must challenge core assumptions and define new ways of doing business to meet the changing landscape.

Increase integrity of the product supply chain. New business practices and technology are enabling companies to truly secure the product supply chain and provide visibility and tracking of inventory. Supply chain professionals must embrace these approaches and clearly articulate the return on investment in these measures.

Leverage information technology for increased compliance, productivity and efficiency. Pharmaceutical companies have invested heavily in information technology yet often have not leveraged those investments for maximum value. Business and IT professionals should look for the intersection of best business practices with the best information technology to drive business value.

Drive for continuous improvement and operational excellence. Standing still can be dangerous. Numerous methodologies and techniques are available to assist in evaluating and improving business processes to improve compliance, productivity and performance. Business process owners must use these tools to seek continuous improvement and world class performance of their business.

Those companies who can embrace change will seize the opportunities ahead and transform themselves, emerging as the industry leaders of the future.

> Scott Chizzo is the president and CEO of Maxiom Group, a leading strategic business and IT consulting firm exclusively serving the life sciences industry. He can be reached at schizzo@maxiomgroup.com. For more information go to www.maxiomgroup.com.