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The R&D productivity challenge: transforming the pharmaceutical ecosystem
Alexander Schuhmacher1, Oliver Gassmann2, Sebastian Kwisda3
1Technische Hochschule Ingolstadt, Germany; University of St Gallen, Switzerland.
Drug Discovery Today
|October 9, 2025
Summary
Declining pharmaceutical R&D productivity impacts the entire industry, forcing major changes. Large pharmaceutical firms face significant challenges, while other biopharmaceutical ecosystem players may benefit.
Area of Science:
- Pharmaceutical industry
- Biotechnology
- Drug development
Background:
- Persistent decline in pharmaceutical R&D productivity over two decades.
- Profound implications for industry structure and strategy.
- Adaptation of R&D models by leading companies.
Purpose of the Study:
- Analyze the impact of R&D productivity decline.
- Examine industry evolution into a biopharmaceutical ecosystem.
- Assess consequences for different stakeholders.
Main Methods:
- Qualitative analysis of industry trends.
- Review of strategic adaptations in R&D.
- Examination of stakeholder interdependencies.
Main Results:
- Industry evolved into a complex biopharmaceutical ecosystem.
- Large pharmaceutical firms are most affected by productivity issues.
- Other stakeholders experience varied impacts, some beneficial.
Conclusions:
- R&D productivity is critical for large pharmaceutical firm competitiveness.
- The biopharmaceutical ecosystem structure is a response to R&D challenges.
- Stakeholder value is unevenly distributed in the evolving landscape.
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