Dr.Shruti Bhat, an Expert in Pharmaceutical industry, brings to you some highlights from current pharma and clinical research news, views and data.
It’s the title of a very insightful analytical paper by Bernard Munos (Nature Reviews, Dec-2009). He applied statistical analysis techniques to the aggregate inputs and outputs of the pharmaceutical industry.
The most stunning insights from his analysis are:
1. Average annual output of the industry is constant and has been so for 60 years, despite consistent increase in R&D investment ($50 billion/year). Practically, it means that the output of the industry is not depressed, as commonly thought, but simply reflects the innovative capacity of the established R&D model. In this light,new approaches, such as the open innovation paradigm, public-private partnerships and industry consortia hold a lot of promise.
2. If the NME (New Molecular Entity) output is constant, the only way to grow is to increase the number of companies, which goes contrary to the 2009 wave of large mergers & acquisitions (M&As). However, Bernard Munos’ analysis shows that, broadly speaking, the impact of M&A in the pharmaceutical industry on R&D is “1+1=1″...
Solution? Bernard Munos’ recommendations point to the need to rethink process and culture.
How do we bring in passion for discovery? Is it through good HR practises? Certainly not... and it doesn’t need management to pump in dollars either !
The answers are available for those interested to bring in a wave of change to their R&D’s systems, functioning and culture....
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