Innovative Strategies and Models for R&D Success: The evolving networked pharma company—Aarkstore Enterprise
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Innovative Strategies and Models for R&D Success The evolving networked pharma company
Report overview
Many pharma companies are currently engaged in wide-scale R&D restructuring, adopting a biotechnological approach to drug development by establishing disease-focused R&D units, R&D spin-offs, strategic partnerships and joint ventures. This trend has been reinforced by the emergence of public/private partnerships, co-operatives and open-source research initiatives that have encouraged companies to target previously neglected disease areas such as biotherapeutics and vaccines. Emerging markets are also driving change throughout R&D, with companies increasingly internationalizing their processes to take advantage of tax incentives, government investment, cheap labor and technology specialists.
‘Innovative Strategies and Models for R&D Success’ is a new report explores how the latest pharma R&D strategies are improving productivity and containing costs. The effectiveness of new and emerging approaches to drug discovery and development are assessed, with over 40 detailed case studies of partnerships, alliances, collaborations, outsourcing and in-licensing opportunities. This report also explores the potential benefits and disadvantages of key offshore markets including China, India and Russia and examines the recent internal restructurings of major companies such as AstraZeneca, GlaxoSmithKline, Pfizer and Roche.
Use over 40 detailed case studies to assess new R&D approaches, and identify which strategies are most effective for different company sizes, therapeutic area focus, product portfolios and geographical locations…
Key findings
• The pharma industry is migrating towards fully-integrated networked pharmaceutical companies (FINPCos) that can improve productivity and effectively exploit the cost-savings associated with R&D internationalization. This model maximizes investment returns through the use of innovative partnerships and strategic alliances.
• Major companies including AstraZeneca, GSK, Roche and Pfizer have recenty undertaken major R&D restructuring. Changes have typically involved strategic risk-sharing partnerships, collaborations, joint ventures, spin-offs and contract agreements.
• Big Pharma are increasingly engaging in a range of risk-sharing partnerships with academics, federal agencies, contract providers, biotechs and other pharma players. Such alliances alleviate the risks of drug discovery and can improve R&D efficiency.
• Up to 30% of clinical studies are currently outsourced, and this figure will rise to 50% by 2010. This growth will be driven by companies consolidating their focus upon core competencies while contracting out secondary R&D programs to specialists.
• Virtual pharma models can reduce drug development costs by at least 25% and development times by up to 50%. Niche pharma companies have emerged to add value through strategic outsourced clinical developments that are out-licensed to established players.
Key questions answered
• What are public private partnerships and how can they be used to expand R&D programs?
• How will private federal partnerships improve technology transfer to the industry?
• To what extent can R&D outsourcing reduce development times and contain costs?
• Who are the key contract service providers in the emerging markets and what R&D related services do they offer?
• Which alternative R&D strategies are being used to attract investment and drive product development?
• How can pharma companies most effectively ensure shareholder value in the future?
Key issues examined by this report
• Benefits of R&D restructuring. The redesign of pharma R&D models within large companies is creating an entrepreneurial environment that enhances the flow of information and facilitates faster decision-making during product development. Strategic networking is also helping companies to expand their portfolios and develop a new generation of progressive blockbusters.
• New R&D approaches reduce consolidation. Innovative R&D strategies such as risk-sharing partnerships and strategic/tactical outsourcing are helping to combat the declining levels of productivity that are driving industrial consolidation.
• Role of ‘R&D spin-offs’. R&D spin-offs enable pharma companies to streamline their portfolios and reduce overheads, whilst retaining the option to license back successful candidates at a future date. The speed of product development can also be significantly improved away from internal pharma processes.
• Influence of emerging markets. Offshore R&D investments in emerging countires are becoming increasingly attractive following the lifting of WTO restrictions, tightened IP protections, infrastructure improvements and tax exemptions. India, China and Russia offer the most significant cost advatages.
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