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Racing to define pharmaceutical R&D external innovation models.
Liangsu Wang1, Andrew Plump2, Michael Ringel3
1Merck Research Laboratories, 2015 Galloping Hill Road, Kenilworth, NJ 07033, USA.
Pharmaceutical companies are adopting external innovation strategies like academic collaboration and biotech partnerships to boost research and development (R&D) productivity and create novel therapies.
Area of Science:
- Pharmaceutical industry
- Biotechnology
- Drug discovery and development
Background:
- Declining research and development (R&D) productivity poses a significant challenge for the pharmaceutical sector.
- Increasing customer expectations necessitate the development of innovative and transformative therapies beyond incremental improvements.
- The need to reduce R&D costs drives the exploration of new innovation models.
Purpose of the Study:
- To review and compare various external innovation strategies employed by pharmaceutical companies.
- To identify current trends in pharmaceutical external innovation.
- To discuss factors influencing these innovation models and propose success metrics.
Main Methods:
- Literature review of pharmaceutical industry innovation strategies.
- Comparative analysis of different external innovation models (e.g., precompetitive collaboration, biotech partnerships, licensing, acquisitions).
- Identification of key trends and influencing factors in external innovation.
Main Results:
- Pharmaceutical companies are increasingly leveraging external sources for innovation to overcome R&D challenges.
- Key strategies include collaborations with academia, nurturing biotech start-ups, and strategic licensing and acquisitions.
- Emerging trends indicate a shift towards more proactive and diverse external innovation approaches.
Conclusions:
- External innovation is crucial for pharmaceutical companies to enhance R&D productivity and deliver transformative medicines.
- A combination of strategic partnerships and acquisitions is vital for a robust innovation pipeline.
- Developing leading indicators for success in external innovation models is essential for future strategy refinement.
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