This shift is in fact the second major wave of change to strike the industry in recent years. For the last decade or so, pharma companies have already been reinventing their business models as the patents on some of their biggest blockbuster drugs drew close to expiration and it became clearer that existing pipelines would not be sufficient to fill the gap. As the industry moved from Pharma 1.0 (the blockbuster model) to Pharma 2.0 (today’s pharmaceutical industry), companies sought to replenish their pipelines, boost revenues and “variablize” fixed costs. They diversified away from blockbusters into portfolios of more-targeted drugs in strategic therapeutic areas, as well as into other segments such as over-the-counter (OTC) medicines, generics, animal health and consumer products. They brought increased focus and discipline to managing for the bottom line with aggressive cost-cutting measures, including standardization and outsourcing. And as emerging markets came into their own, pharma companies expanded their geographic footprints