The pharmaceutical industry is in transition. More and better drugs are reaching the market than at any time since WWII. Yet, challenges remain that will likely reshape the industry in the decade ahead. They include:• A massive shift of market share toward generics, which now fill 90% of prescriptions in the US—up from 50% in 2000• New technologies which are digitizing science and medicine• The emergence of mHealth technology which is slashing the cost of data collection and allowing the capture of rich, longitudinal data sets• The growing engagement of patients in data collection, and their control over the use of that data• The concern about drug prices which is pushing Americans of both parties to press for government action• New players such as virtual companies, academic entrepreneurs, patient organizations, and venture philanthropists, that are pursuing various models for doing drug R&D on a shoestringIt is hard to predict the joint impact of these forces on the pharmaceutical industry. Many industry metrics are worrisome: over 75% of the sales of the top 22 companies come from drugs that are more than 10 years old; seven of the top thirteen pharma companies have seen a drug revenue contraction since 2010; six large companies have disappeared to M&A since 2000; and the increasingly challenging competitive environment makes it difficult for mediocre drugs to achieve commercial success, putting less innovative companies in a precarious situation.While scientific and technological advances point to the dawn of a hyperinnovation age, the legacy innovation models used by many pharmaceutical companies are ill-suited to harness innovation occurring outside their zones of comfort. This may cause turmoil ahead and culminate in a surge of new players which will rise to the top of the industry, powered by nimbler and thriftier R&D models.InnoThink was created to help biomedical research organizations become better innovators.