Leading Pharmaceutical Innovation: Trends and Drivers for Growth in the Pharmaceutical IndustryPharmaceutical innovation is like gambling at roulette, only the stakes are higher. Considerably higher, since the most recent estimates put the costs of drug development at US$ 800 million to US$ 1 billion - per drug! This is equivalent to the price tag of the Empire State Building, when it was for sale a few years ago. In 2001, the major US and European pharmaceutical companies invested more than US$ 30 billion in R&D, at a higher R&D to-sales ratio than virtually any other industry, including chemicals, auto mobiles, electronics, aerospace, and computers. Delivering a blockbuster drug is the Holy Grail for any pharmaceutical company. But in the last decade the rules of developing blockbusters seem to have changed. On the one hand, more sophisticated screening technolo gies, genetic engineering, and expanding networks with biotechnology companies increase the probability of commercial success. Critical success factors include the discovery phase and a stronger outside-in orientation in the early innovation phase. After the implosion of the high-tech stock mar ket, biotechnology and other technology-driven opportunities may have lost some of their attractiveness for big pharma: a pipeline of solid and predictable innovations seems to be the highest goal of most pharmaceuti cal companies again. On the other hand, despite significant investments in pipeline management and novel technologies, there is still no recipe for ensuring a blockbuster hit. |
Contents
1 | |
Strategies for Growth | 10 |
Risk of Entry from Potential Competitors | 16 |
The Case of Switzerland | 23 |
Sound Productivity and Employment | 30 |
Fragmented Market Structure | 39 |
Accurate Price Regulation | 50 |
How to Find | 53 |
The Complexity of Drug Discovery | 75 |
The RD Process at HoffmannLa Roche | 82 |
Successful Commercialization of a Breakthrough Technology | 91 |
Trends and Drivers of Internationalization | 97 |
Locations of Pharmaceutical RD Abroad | 106 |
Conclusions | 114 |
VII | 136 |
RD Management at Roche | 151 |
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AstraZeneca billion biotechnology biotechnology companies blockbuster drugs blockbuster market blockbuster sales ceutical chemical chemistry clinical trials combinatorial chemistry commercialization company’s competition compounds costs disease drug development drug discovery drug sales firms genes genetic genomics GlaxoSmithKline Gleevec global growth healthcare Hence high-throughput screening impact important improved increased international R&D investment Japan know-how launch licensing List of Proprietary maceutical major manufacturers market share Merck molecular molecules Novartis oncology organization orphan drug outsourcing overall patent protection Pfizer phar Pharma Information 2002 pharmaceutical companies pharmaceutical industry pharmaceutical innovation pharmaceutical products pharmaceutical R&D pharmaceutical research pharmaceutical-chemical industry pharmacies pharmacogenomics phase pipeline portfolio potential proteins proteomics R&D activities R&D internationalization R&D management R&D process research and development Reuters revenues scientists SD-physicians Serono service provider soft capsule Source strategy structure substances Swiss pharmaceutical market Swissmedic Switzerland target technical evaluation therapeutic areas tion worldwide