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2016 ; 14
(1
): 105
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Changing R&D models in research-based pharmaceutical companies
#MMPMID27118048
Schuhmacher A
; Gassmann O
; Hinder M
J Transl Med
2016[Apr]; 14
(1
): 105
PMID27118048
show ga
New drugs serving unmet medical needs are one of the key value drivers of
research-based pharmaceutical companies. The efficiency of research and
development (R&D), defined as the successful approval and launch of new medicines
(output) in the rate of the monetary investments required for R&D (input), has
declined since decades. We aimed to identify, analyze and describe the factors
that impact the R&D efficiency. Based on publicly available information, we
reviewed the R&D models of major research-based pharmaceutical companies and
analyzed the key challenges and success factors of a sustainable R&D output. We
calculated that the R&D efficiencies of major research-based pharmaceutical
companies were in the range of USD 3.2-32.3 billion (2006-2014). As these numbers
challenge the model of an innovation-driven pharmaceutical industry, we analyzed
the concepts that companies are following to increase their R&D efficiencies: (A)
Activities to reduce portfolio and project risk, (B) activities to reduce R&D
costs, and (C) activities to increase the innovation potential. While category A
comprises measures such as portfolio management and licensing, measures grouped
in category B are outsourcing and risk-sharing in late-stage development.
Companies made diverse steps to increase their innovation potential and open
innovation, exemplified by open source, innovation centers, or crowdsourcing,
plays a key role in doing so. In conclusion, research-based pharmaceutical
companies need to be aware of the key factors, which impact the rate of
innovation, R&D cost and probability of success. Depending on their company
strategy and their R&D set-up they can opt for one of the following open
innovators: knowledge creator, knowledge integrator or knowledge leverager.