Here's an article addressing changes needed in Big Pharma's R&D approach that advocates the Shire model (quoting Shire CEO Angus Russell) of buying Phase II and III projects and finishing off the clinical trials rather than spend heavily on its own R&D.
That's great for Shire (perhaps) up till now, but what would happen if every Big Pharma company took that approach? Wouldn't we tend to run out of properties that would have the needed value? And wouldn't the price for these go up with all the extra bidders? I'm not even sure Shire could remain in the game if everyone took that approach simultaneously.
At best, this could be a supplementary strategy for some companies in my view. I think someone will still need to fuel the innovation to keep the pipeline alive.
Lean. Mean. Fighting-machine.
Posted by Bruce Lehr Feb 15th 2011.