Winning R&D Productivity Strategies
Exploiting innovation, licensing and outsourcing opportunities
| Publication Date | October 2006 |
|---|---|
| Publisher | Business Insights |
| Product Type | Report |
| Pages | 136 |
| ISBN Number | not applicable |
| Product Code | RBI00117 |
Summary
The need to produce novel drugs faster and more cheaply has put biopharma under intense pressure to innovate, despite rising costs and high risks. As R&D spend rises year on year, limited growth in the number of marketed drugs threatens to deepen the productivity crisis.
Our new report; Winning R&D Productivity Strategies provides in-depth analysis of current issues affecting R&D, with assessment of challenges to productivity including, rising costs of drug development, attrition rates and clinical development times. This report analyzes solutions already being implemented to boost productivity and how these are evolving. In addition, it outlines key best practices to improve productivity and reduce R&D costs.
Use this report to identify key areas of growth, effective strategies and innovative technologies to improve lead generation, attrition rates and return on investment from your portfolio.
Key questions answered
- India is forecast to be the most attractive country for outsourcing by 60% of industry executives.
- What is the current state of R&D in biopharma and what are the future challenges and opportunities for R&D?
- What are the most effective strategies to implement to address the rising costs of R&D and which companies have achieved this?
- How can innovative technologies, project and portfolio management and licensing and partnerships be implemented to reduce development times and improve the flow of drug candidates?
- What does the industry think of the future of R&D productivity and which strategies do they view as most attractive?
Key findings *The largest share of the R&D spend by PhRMA members is in Phase III and prehuman/preclinical trials, and over 20% of drug failures in drug development have been attributed to toxicity concerns. *Target validation is predicted to be the main focus of licensing deals by pharma in the next 3 years. *The application of genomic technologies, such as biomarkers, offers the opportunity to save up to 34% of R&D costs. *80% of industry executives believe that multi-product licensing deals are set to increase over the next 5 years. *India is forecast to be the most attractive country for outsourcing by 60% of industry executives.
Hot issues covered in this report
- Licensing deals are increasing in complexity and value. The average value of deals have also increased over the last few years as indicated by $194m increase in average value of the top 10 pharmaceutical company licensing deals from 2001 to 2005.
- The move towards the networked pharma model. Biopharma are looking to exploit the flexible networked pharma model, which allows companies to gain benefits of a global scale pharma while keeping resources at a minimum and sharing risk.
- Emergence of innovative technologies. The vast range of technologies acts an opportunity to improve development times, attrition rates and end product price. The use of pharmacogenomics and biomarkers is set to rapidly increase and have a huge long term potential in drug discovery.
- Increased clinical development times. Development times have increased over the last decade, which is largely due to drugs becoming more innovative and subsequently requiring more testing and developing compared to less novel drugs with familiar mechanisms of action.
Top five reasons to order your copy today
- Identify strategies implemented by the biopharma industry to decrease R&D costs and increase productivity, and assess key trends and novel approaches to outsourcing and resource management which enable company re-structure and maximization of in-house resources.
- Assess key technology providers and establish which technologies should be implemented at various stages of the R&D process, enabling you to enhance productivity levels and gain a competitive edge.
- Benchmark your performance monitoring process, enabling you to choose the most appropriate markers to measure your own company productivity and assess your position within the industry.
- Develop innovative future strategies by utilizing the report's analysis of successful project and portfolio, licensing and partnership and resource management strategies by companies including Wyeth, GlaxoSmithKline and AstraZeneca.
- Anticipate future trends in the market, by using the report's predictions for areas of growth and gain insights into the outlook for innovative technologies in the R&D process.
Content
- Executive Summary
- Introduction
- New technologies in R&D
- Project and portfolio management
- Licensing and partnerships in R&D
- Resource management
- Monitoring performance of strategies implemented
- Chapter 1 Introduction
- Summary
- Introduction
- R&D
- Decrease in R&D productivity
- Industry opinion of R&D productivity
- Risk and the commercial market in drug discovery
- Challenges and causes of decline
- Cost of drug development
- Innovation and attrition
- Regulatory burden
- Size and scale of operations
- Clinical development times
- The key issues affecting R&D today
- Opportunities and how to increase productivity
- Responses to the crisis
- Short-term
- Long-term
- Big Pharma emerging from the R&D productivity crisis
- Chapter 2 New technologies in R&D
- Summary
- Introduction
- The future of innovative technologies in R&D
- Integration of technologies in the R&D process
- Comparison of technologies in the R&D process
- Technologies to increase the number of targets in drug discovery
- Array technology
- Biomarkers
- Stem cells
- Technologies for decreasing costs and development times
- RNAi
- Microfluidics
- Toxicogenomics/ADMETox
- High through-put screening
- Technologies for decision making and optimization
- Bioinformatics
- Chemogenomics
- Pharmacogenomics
- The move towards targeted therapies
- Conclusions and key points
- Chapter 3 Project and portfolio management
- Summary
- Introduction
- Why use project and portfolio management in R&D?
- Challenges to project and portfolio management
- Portfolio management
- The R&D portfolio
- The portfolio management process
- Reviews and evaluations
- Decision making and strategic alignment
- Resource management
- Portfolio management in action
- Sanofi-Aventis
- Genentech
- Lundbeck
- Project management
- The project management process
- Value and risk profiles
- Financial evaluation
- R&D Project management in action
- Schering AG
- AstraZeneca
- Dr Reddy's
- Conclusions and key points
- Chapter 4 Licensing and partnerships in R&D
- Summary
- Introduction
- Licensing and collaborations
- The licensing process
- Licensing trends
- Multi product deals, and long term collaborations
- Increased number and average value of licensing deals
- Biotech as a licensing partner
- Oncology is the dominant therapy area by number of deals
- Licensing deals for later stage drugs
- Out-licensing
- In-licensing
- Biogen Idec
- Novartis
- Collaborations
- Curis
- Roche
- Future of licensing and collaborations
- Outsourcing
- Out-sourcing to increase R&D productivity
- Impact of mega-mergers on productivity
- Conclusions and key points
- Chapter 5 Resource management
- Summary
- Introduction
- Management and integration of deals in drug discovery
- Alliance management
- Managing partnerships
- M&A
- Timelines and preventing overruns
- Organizational and operational issues in drug discovery
- Restructuring - traditional versus networked R&D model
- Company size - reduce organizational size to increase R&D performance
- R&D outsourcing
- Decentralizing R&D operations
- Outsourcing to China and India
- Big Pharma conducting R&D in China and India
- Conclusions and key points
- Chapter 6 Monitoring performance of business strategies
- Summary
- Introduction
- What to monitor and how?
- Who monitors R&D productivity?
- CMR programmes
- Cognos
- Cognos 8 business intelligence
- Quality versus quantity
- Short-term and long-term outcomes
- Conclusions and key points
- Chapter 7 Appendix
- Primary research survey
- Index
- List of Figures
- Figure 1.1: R&D expenditure versus annual NME approvals, 1995-2005
- Figure 1.2: Total number of drug launches in the US, 1945-2004
- Figure 1.3: Industry opinion of R&D productivity over time
- Figure 1.4: Industry opinion of current R&D productivity in the Biopharma market
- Figure 1.5: Managing risk in drug development
- Figure 1.6: Industry opinion of the significance of challenges to R&D productivity, 0 = No significance 3 = Very significant.
- Figure 1.7: US drug pipeline is increasing novel
- Figure 1.8: Attrition rates by novelty status, current status of INDs filed 1996-1998
- Figure 1.9: Key reasons for attrition in drug discovery, 2003
- Figure 1.10: "Effective" patent life
- Figure 1.11: Increasing clinical development times
- Figure 2.12: Potential cost savings per drug using genomics ($m)
- Figure 2.13: Integration of technologies in the R&D process
- Figure 2.14: Comparison of innovative technologies in R&D
- Figure 2.15: Industry opinion of how innovative technologies will affect R&D productivity over the next 5-10 years
- Figure 2.16: Microfluidics, features, benefits and applications
- Figure 2.17: Integration of databases within the discovery process
- Figure 3.18: The portfolio management process
- Figure 3.19: Risk assessment in practice
- Figure 3.20: An example of project management commissioning at Schering AG
- Figure 4.21: The pharmaceutical licensing process
- Figure 4.22: Number of top 10 pharmaceutical company licensing deals by deal type, 2001-2005
- Figure 4.23: Number of top 10 biotech company licensing deals by deal type, 2001-2005
- Figure 4.24: Industry opinion of change in the number of licensing/partnering deals in the last 5 years
- Figure 4.25: Industry opinion of change in the number of licensing/partnering deals in the next 5 years
- Figure 4.26: Average value of top 10 pharmaceutical company licensing deals, 2001-2005
- Figure 4.27: Number of top 10 pharmaceutical and biotech company licensing deals by partner, 2001-2005
- Figure 4.28: Proportion of product-based licensing deals by therapy area, 2001-2005
- Figure 4.29: Number of biotech R&D licensing deals by development stage, 2001-2005
- Figure 4.30: Licensing process at Novartis
- Figure 4.31: No economies of scale in pharmaceutical R&D
- Figure 5.32: Vision of networked pharma in 2016
- Figure 5.33: Wyeth's R&D productivity model, 2001
- Figure 5.34: Advantages and disadvantages of inhouse, outsourced and collaborative R&D
- Figure 5.35: Industry opinion of the most productive method of conducting R&D
- Figure 5.36: Industry opinion of attractiveness of countries/regions for R&D outsourcing. 1 = very unattractive, 5 = very attractive. Response average shown
- Figure 6.37: Major reasons to implement monitoring of R&D processes
- Figure 6.38: Markers of productivity
- Figure 7.39: R&D productivity survey respondents by company focus
- List of Tables
- Table 1.1: R&D by function, PhRMA member companies, 2004
- Table 2.2: Companies involved in array technologies, A-L
- Table 2.3: Companies involved in array technologies, M-Z
- Table 2.4: siRNA-based drugs and therapies
- Table 2.5: Biotech providers of commercial ADMETox software
- Table 3.6: Risk factors in project management
- Table 5.7: Reasons for time and budget overruns
- Table 5.8: Mean clinical development times in months, based on 400 protocols, 2000
- Table 5.9: US R&D scientific, professional and technical personnel by function, PhRMA companies: 2004
- Table 5.10: US FDA new drug application data generated from India
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