Biomedical Engineering Reference
In-Depth Information
GEARING UP FOR DRUG DISCOVERY AND DEVELOPMENT
ROUTE TO MARKET
FIRM'S POSITION, STRUCTURE,
CHARACTERISTICS
STRATEGIC ORIENTATION AND
PROCESS DECISIONS
COLLABORATION, TIMING AND
MARKET ENTRY DECISIONS
Ownership and Funding
−
Strategic Priorities
−
Partnerships for Drug Development
and Commercialization
−
Public, federally-funded
Revolutionary innovation (pioneer)
−
Public, funded by shareholders
−
Incremental innovation (follow-on)
Alliances
Modes
Partner type
Partner selection
Number of partners
−
Private
−
Imitation (me-too, generics)
Organization Size
Research Focus
−
Market Capitalization
Specialized
Level of Research
−
−
Diversified
−
Horizontal co-marketing
agreements
−
Fundamental
Process Efficiencies
−
−
Applied
Economies of scale (supply side)
Mergers and acquisitions
−
Economies of scope (demand side)
Management Type
−
−
Spin-offs
Centralized
Functional Flow
−
Timing for Intellectual Property
Protection
−
−
Decentralized
Vertically Integrated
−
Horizontally Integrated
Organizational Resources
−
Patent filing
Upstream assets
(R&D, technology, compound
libraries)
−
Drug Discovery
−
−
Patent extensions
Conceived independently
−
Filing for market exclusivity
−
Aided by open science
Scheduling Follow-on Releases
Downstream assets
(manufacturing, sales force,
marketing)
−
−
Assisted by spillover effects
Internal spillover effects
External spillover effects
Market Selection
Timing of Market Entry
Marketing Strategy for the Market
Launch
Intangible assets
(know-how, absorptive capacity,
experience, contacts,
networks, reputation)
Project Sourcing and Outsourcing
−
Self-generated drug candidates
Market Maintenance and Monitoring
over the Lifecycle of the Drug
−
Licensed-in drug candidates
−
Licensing-out of drug candidates
Characteristics of the therapeutic class (e.g., symptom severity
and disease prognosis, treatment urgency, duration)
LENGTH AND COMPOSITION OF THE FIRM'S PROJECT PIPELINE
Fig. 2.5
Drivers and decisions in the process of drug innovation: suggested framework for analy-
sis and research
massive environmental strains or in brief windows of opportunity might steer fi rms
toward greater diversifi cation or specialization. Firms may strive to attain process
effi ciencies from greater economies of scale (e.g., large volumes of production) or
from greater economies of scope (e.g., serving niche markets with custom treat-
ments). Confl icting tensions are already afoot and fi rms often undertake organiza-
tional restructuring to modify the scale, the scope, or the focus of their operations.
Deliberate or involuntary, such transitions may have considerable consequences for
the fi rm, the duration of its innovation process, its likelihood for success, or its cost
and revenue models.
Furthermore, the attendant organizational changes may affect fi rms' sales and stock
market performance, creating a dynamic, evolving ecosystem that would be especially
worthy of detailed analysis and possibly, amenable to optimization. Examining the
exceptions to the prevalent regularities, in conjunction with studying the environmental,
technological, strategic, or structural factors that enable them to emerge and persist, can
be illuminating. For example, if specialization can be more closely associated with
economies of scale on the supply side while diversifi cation is related to economies of
scope on the demand side, then variations in the fi rms' respective co-specialized assets
(e.g., in drug discovery, in development and manufacturing, or in marketing and dis-
tribution) might differentially affect the attainable benefi ts from specialization and
diversifi cation, and consequently, the strategic orientation of fi rms.
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