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R&D Strategies

Incremental improvements & paradigm shifts in strategy are both necessary to boost productivity

Publication Date August 2007
Publisher Datamonitor
Product Type Report
Pages 144
ISBN Number not applicable
Product Code DAT06872
Buy this product or for assistance call +44 20 7060 7474

Summary

Waves of technological advancements have powered significant evolution in R&D from serendipitous drug discovery, through to rational drug design. However, as the low-hanging fruit has been picked, and recent technological advances have failed to yield high numbers of new therapies, the search is on to identify R&D strategies to improve R&D productivity

Scope

  • Overview of the pressures facing drug developers, including an analysis of whether the industry is facing an R&D productivity crisis
  • In-depth analysis of R&D deal activity, together with a pipeline snapshot, to identify trends that are shaping the R&D environment
  • Identification of strategy optimization recommendations designed to drive up R&D productivity
  • Evaluation of case-studies of Big Pharma R&D strategies to determine how these companies are addressing the productivity problem

Highlights

Over the last decade, significant investment in novel technologies has failed to yield a substantial increase in innovative drugs



To drive up future productivity, drug developers are making either incremental changes to fine-tune the R&D process or they are implementing paradigm changes to radically alter the way that R&D is carried out



R&D productivity depends on accelerating and boosting the output of drug discovery and development, and there are a range of strategies to do this, including optimizing the R&D model and improving the R&D process

Reasons to Purchase

  • Gain a clear understanding of the factors driving drug developers to change R&D strategies
  • Gain insight into the trends in R&D clinical pipeline deal activity and pipeline focus
  • Understand how a wide of strategies can optimize R&D productivity and identify how these can best be implemented

Content

  • Chapter 1 Executive Summary
    • Scope Of The Report
    • Methodology For Primary And Secondary Research
    • Key Findings
  • Chapter 2 Concerns Over R&D Productivity Have Increased The Focus On R&D Strategies
    • The Fall In Innovative Drug Approvals, Coupled With Soaring R&S Costs, Indicates That Big Pharma Is Suffering From An R&D Productivity Crisis
    • The Number Of Innovative Drug Approvals Is Falling
    • The Cost Of Developing Each Successfully Launched Drug Has Soared
    • But Is The Drug Development Industry Really Facing A Fall In R&D Productivity?
    • A Range Of Challenges Faces Drug Developers, Increasing The Importance Of Prioritizing Enhanced R&D Productivity
    • Factors Making It More Profitable For Drug Developers To Become More Focused On R&D Investment And Switch Away From Biasing Spending Towards Sales And Marketing
    • Factors Creating Less Stability Or Threatening Profitability, Which Are Making Companies More Risk-Averse
  • Chapter 3 Analysis Of Medtrack Clinical Pipeline Deals And Drug Databases
    • Partner Mix In Deals: Earlier-Stage Companies Are The Most Active Deal Makers
    • Primary Deal Goal: Co-Development And Licensing Deals Remain The Most Popular Deal Types
    • Therapeutic Focus Of The Pipeline: Oncology Remains The Dominant Target
    • Approval Times Are Quickest For Infectious Disease And Oncology/Idi Drugs
    • Both Probability Of Progression Through Development And Development Speed Are Optimal For Oncology, Idi And Infectious Disease Drugs
    • Specific Characteristics Of Therapy Areas Make Them Attractive To Different Drug Developers
    • Cost Of Development Is Also Vital In Deciding Which Therapy Area To Target
    • Deal Product Type Focus: Biologics Are Popular, Although Small Molecules Remain Dominant
  • Chapter 4 A Wide Range Of R&D Strategy Recommendations Can Be Implemented To Improve R&D Productivity
    • An Introduction To R&D: The History Of Drug Development
    • Many Different Strategies Have Been Held Up As The Panacea Of The Drug Development Industry
    • Companies Such As Bayer Schering Pharma Are Leading The Pack In Development Time
    • Case-Study Examples Of How Big Pharma Is Changing R&D To Enhance Productivity
    • A Number Of Companies Are Making Small Refinements To Drive Incremental Improvement; However Companies Will Need To Ally These With Seismic Changes To Yield Dramatic Access To Innovation In The Future
    • Merck's Model
    • Lilly's Model
    • Novartis's Business Model Strategy
    • Wyeth's Business Model Strategy
    • Some Big Pharma Companies Have Thrown Out The Old Models And Have Started Again: These Are Likely To Be The Big Winners In The Future From An Innovation Capture Perspective
    • Gsk's Model
    • Roche's Model
    • Which Model Is Best?
    • Datamonitor Has Identified Two Groups Of Strategies To Optimize R&D: Those That Improve The R&D Model, And Those That Optimize R&D Pathway Progression
  • Chapter 5 Recommendations To Optimize The R&D Model
    • Optimize Outsourcing Strategies
    • Drug Developers Should Implement Strategies To Optimize The Way That Cmos Are Used
    • Across The Drug Development Industry, There Is Increased Strategic USAge Of Outsourcing And Globalization Of Functions
    • Introduction To Contract Research Outsourcing
    • A Range Of Factors Are Driving The Use Of Cros
    • Despite The Significant Number Of Benefits, There Are Some Downsides To Using Cros
    • There Are A Wide Variety Of Cros
    • The Cro Market Is Becoming Increasingly Globalized
    • Outsourcing R&D: Advantages And Disadvantages Of Emerging Countries
    • There Are A Range Of Advantages And Disadvantages With Outsourcing To Emerging Markets
    • How Can Western Cros Survive? The UK Situation As A Case Study For How Cros Can Be Used In Western Markets
    • India And China Are The Most Popular Emerging Countries For Outsourcing Cro Activity
    • Indian Cros-Advantages And Disadvantages
    • Chinese Cros-Advantages And Disadvantages
    • Strategies That Can Be Used To Optimize The Cro Experience
    • Make Significant Commitments In The Relationship With The Cro
    • Ensure That Communication Between The Cro And The Drug Developer Is Strong, And That The Right Information Is Communicated
    • Ensure That The Way That Staff Are Used Is Optimal
    • Drug Developers Should Try To Remain Appropriately Cautious And Not Take Unnecessary Risks With The Cro Relationship
    • There Are Also Some Recommendations That Are Specific To The Chinese Market
    • Major Drug Developers Need To Improve Their Access To Early-Stage Research
    • Private Equity Arms Of Big Pharma Companies Are Particularly Useful In Capturing European Early-Stage Innovation
    • Incubators Are A Relatively New Strategy Designed To Improve Earlier-Stage Innovation Capture
    • Despite Significant Potential In Providing Access To Early-Stage Pre-Commercial Data, Open-Source Research Remains Under-Utilized
    • Drug Developers Should Use Licensing And M&A To Support In-House R&D
    • There Are A Range Of Advantages And Disadvantages With Licensing
    • A Range Of Factors Are Influencing The Licensing Environment
    • There Are A Range Of Recommendations That Drug Developers Can Use To Optimize Their Licensing Strategy
    • Big Is Not Always Best For Drug Discovery And Development: Why Mega-Mergers Are Not Always The Solution For Improved R&D Productivity
    • Optimize Macro Drug Development Strategy
    • Companies Must Determine The Strategic Balance Between Me-Too Incremental Improvement And First-In-Class Targeting
    • Even Large Multinational Drug Developers Should Look To Tighten Therapeutic Focus
    • Implementing Infrastructure Improvement-Focused Strategies Including Optimizing Portfolio Management Is Integral To Improving R&D
    • Broaden The Range Of Targets But Maintain The Therapeutic Focus Is Another Option
    • Improving Specific R&D Tools Will Help Improve The R&D Model
    • Biomarkers Use Patient Stratification And Market Segmentation To Drive Future Market Growth
    • Introduction: The Evolution Of Patient Treatment Into Personalized Therapies
    • The Current State Of The Biomarkers Market
    • Biomarkers Are Used In A Range Of Functions
    • Factors Driving The Evolution Of Biomarkers
    • Factors Restricting The Biomarkers Market
    • Better Implementation Of It Can Also Significantly Help R&D
  • Chapter 6 Optimizing R&D Processes Will Help To Boost R&D Productivity
    • Optimize Safety Assessment In Preclinical Tests
    • The Problem: The Evolution Of Effective Safety Assessment Is Lagging
    • The Solution: Improved Safety Assessment Tools Plus The Implementation Of A Rigorous Assessment Program
    • Drug Developers Should Look To Improve The Way That Clinical Trials Are Being Run In-House
    • Better Use Of Academic Medical Centers Helps To Improve Clinical Trial Progression
    • Introduce Innovative Clinical Trial Designs To Get Rid Of Redundancy And Identify Where Parallel Operations Can Be Carried Out
    • Develop Robust Strategies To Reduce Attrition
    • What Causes Attrition?
    • Why Reduce Attrition?
    • How Can Attrition And Risk Be Reduced?
    • Taking Attrition Early Helps Reduce The Financial Impact
    • Optimize Use Of, And Interaction With, Regulators
    • Use Regulatory Bodies To Gain Access To Huge Amounts Of Data
    • Use Increased Interaction To Reduce The Cost And Time-Delays Associated With Regulatory Procedures
    • Build A Strong Understanding Of The Global Regulatory Environment
    • Focus On Developing Innovative Drugs To Capitalize On Regulatory Rewards
    • Capitalize On Regulatory Programs To Help Develop Drugs For Niche Or Serious Indications
    • The Launch Of The Accelerated Development Program In Europe Brought It More In Line With The Many Acceleration Programs In The Us
    • Drug Developers Should Make Use Of The Fda's Fast-Track Program
    • Orphan Drug Regulations Aid Innovative Drug Development
    • Introduce Greater P&R Involvement In Clinical Trial Design
    • Improving Patient Enrollment And Retention In Clinical Trials Helps To Speed Up Clinical Trials
    • Close Relationships With Key Opinion Leaders Bring A Number Of Advantages
  • Chapter 7 Bibliography
    • Publications And Online Articles
    • Conference Resources
    • Chi Conference, San Francisco, February-March 2007
    • Biobusiness Network, 2006
    • Economist: 12th Annual Pharmaceutical Conference, February 2006
    • Datamonitor Resources
    • Appendices
  • Appendix A: The Drug Discovery Process
  • Appendix B: Categorization Of Deals In The Medtrack Deal Database
  • Appendix C: Categorization Of Therapeutic Areas
  • Appendix D: Glossary Of Terms
  • List Of Tables
    • Table 1: Emerging Market Cros Offer A Range Of Services
    • Table 2: Advantages And Disadvantages Of Cros In Emerging Markets
    • Table 3: Costs Are Considerably Cheaper In India And China Than In The Us
  • List Of Figures
    • Figure 1: Nme And Bla Approvals Are Falling, 1990-2004
    • Figure 2: Fda Drug Approvals From 1989-2000 Were Primarily For Low-Innovation Drugs
    • Figure 3: A Variety Of Different Studies Have Shown That The Cost Of R&D Has Increased Over Time
    • Figure 4: The Number Of Priority Approvals Has Risen Consistently Over The Last 40 Years
    • Figure 5: The Greatest Number Of Deals In 2005-06 Involved Phase Ii Drugs, And The Greatest Number Of Clinical Drugs In Development Are Also In Phase Ii
    • Figure 6: Deal Activity Is Relatively Constant, But Spikes Slightly At The End Of Each Year
    • Figure 7: Earlier-Stage Companies Dominate As Both Source And Partner In Deals
    • Figure 8: Collaborations Between Earlier-Stage Companies Are The Leading Deal Type
    • Figure 9: Some Partner Deal Mixes Are More Prevalent In Certain Phases Of Development Than Others
    • Figure 10: Co-Development And Licensing Agreements Are The Most Common Deal Goals, Accounting For More Than Two-Thirds Of All Deals
    • Figure 11: Single-Product Deals Were The Primary Focus
    • Figure 12: Different Deal Objectives Are More Common At Different Stages Of Development
    • Figure 13: The Deal Database Indicates Cancer Is Also The Dominant Therapeutic Focus Among 2005-2006 R&D Deals
    • Figure 14: The Pipeline Database Snapshot Indicates That Cancer Is The Dominant Pipeline Therapy Class
    • Figure 15: Oncology/Immunologic And Cns Therapies Have Dominated The Clinical Pipeline From 1993-2005
    • Figure 16: Immune Disorders And Inflammation Dominate R&D Focus, Based On A Snapshot Of The Current Patent Situation
    • Figure 17: Systemic Anti-Infectives Are The Most Likely Drug Class To Move From Entering Clinical Testing To Being Approved By The Fda
    • Figure 18: Antiparasitic Drugs Have The Highest Probability Of Approval And Transitioning Through From Phase Ii To Approval
    • Figure 19: Hiv Drugs Are Among The Quickest Therapies To Develop
    • Figure 20: Respiratory Drugs Are Among The Most Expensive To Develop
    • Figure 21: Antibodies And Vaccines Dominate The Deal Focus
    • Figure 22: Merck Redesigned Its Business Model To Focus On Capturing Innovation And Carrying Out Effective Lifecycle Management
    • Figure 23: Lilly's Business Model Aims To Improve Productivity And Reduce Waste
    • Figure 24: Novartis's Model For Better Integration
    • Figure 25: Wyeth Has Revolutionized Its Approach To R&D
    • Figure 26: Gsk's Cedd Model Is Designed To Mimic Smaller-Scale Biotech Companies
    • Figure 27: Roche's Networked Pharma Model Provided Significant Innovation
    • Figure 28: Optimizing The R&D Process And The R&D Model Are Central To Improving R&D Productivity
    • Figure 29: High Cro USAge Projects Have Faster Development Times Than Low Cro USAge Projects
    • Figure 30: Bric Countries Compare Favorably With European Countries In Terms Of Places To Perform Clinical Trials Outside The Us
    • Figure 31: Astrazeneca's Licensing Opportunity Evaluation Strategy
    • Figure 32: Factors That Restrict Licensing Deals
    • Figure 33: There Is An Inverse Correlation Between Company Size (Defined By Sales) And R&D Productivity
    • Figure 34: A Range Of Safety-Focused Activities Should Be Carried Out To Optimize Safety Assessment
    • Figure 35: Oncology Trials Shows Multiple Opportunities To Change Clinical Trial Design
    • Figure 36: The Greatest Amount Of Drug Development Spending Is In Phase Iii, 2005
    • Figure 37: Poor Pharmacokinetics/Adme And Lack Of Efficacy Top The Reasons For Attrition
    • Figure 38: Clinical Development Is Still The Most Expensive And Lengthiest Section Of Drug Development
    • Figure 39: Regulatory Initiatives Designed To Help Accelerate The Development For Niche Or Serious Indications

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