Impact of Strategic Changes on R&D Efficiency in Drug Development

• Published in: ISPIM Conference Proceedings pp. 1 - 18
• Main Author: Riedel, Norman Hendrik
• Format: Conference Proceeding
• Language: English
• Published: Manchester The International Society for Professional Innovation Management (ISPIM) 01.01.2021
• Subjects: Annual reports; Biomarkers; Clinical trials; Collaboration; Costs; Drug prices; Drugs; Efficiency; Innovations; Management decisions; Manufacturers; New technology; Patient safety; Pharmaceutical industry; Portfolio management; R&D; Research & development; Research & development expenditures; Success; Trends

Drug development has become increasingly challenging and expensive over the last decades, requiring more and more financial resources for bringing new drugs to market readiness. However, more recently a slight reverse of this trend could be observed with an increased number of drugs launched per billion of dollars spent on research and development. On further investigation it was found that this reversed trend was complemented by several strategic changes regarding means and direction of innovation. Internally corporate-driven innovation was combined with acquisition of smaller companies with the required knowledge and intellectual property. Furthermore, a shift in technology focus from small molecules to biologicals increased probability of success in drug development. In addition to that, drug manufacturers concentrated on better understood diseases or employed new technologies like biomarkers, thereby making drug development much easier.