Change your business model. That's the advice offered by Pricewaterhousecoopers (PWC) to the biotech industry. PWC experts say that with the current model biotech's are unable to reduce drug development risk enough to meet investors needs and that the challenge provided by emerging markets will take away further market share and investors. They say the industry needs to become more efficient and collaborative.
PWC's advice to the industry is captured in a report entitled Biotech Reinvented. Strategic collaborations are needed to provide more "efficient and cost effective" drugs. To work in collaborative relationships, companies will need to share assets and insights previously held tight to the vest. There is a need to take more risk and work with thrid parties. Investors will also have to learn to take a longer term view.
PWC further claims that a 5% increase in success rates for each clinical phase transition coupled with a 5% reduction in development time could cut R&D expense by $160 M and save 5 months toward market launch. See PharmaTimes and Fierce Biotech.
This is just further evidence that the current drug development model needs to change from a thrid parties point of view. Big Pharma companies have already started down the path of working with more outside collaborators in the R&D space as well as in manufacturing and clinical trials to make their operations more efficient and effective.
Posted by Bruce Lehr November 8th 2010.