Ensuring a healthy value chain: former P & G Vice Chairman Kerry Clark runs the largest company no one's heard of.(Cover story)(Company overview)

Chief Executive (U.S.),  March, 2007  by Donlon, J.P.

Tags: Procter & Gamble Co., value chain

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U.S. health care spending is growing by 7 percent a year, running about 16 percent of GDP today and reaching $4 trillion, almost a fifth of U.S. GDP over the next eight years. The industry is perched at an inflection point as it deals with immense cost pressures as well as the growth of generic drugs.

At one end of the industry, drug companies are in a dilemma. Since 1991, the cost to develop a new drug has quadrupled to almost $1 billion, while the productivity of research has fallen. At the same time, generic drugs are growing at twice the rate of the branded drug market. At the ...

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