Navigation Links
New Insights on the Decline of Research and Development in Pharma & Biotech
Date:1/8/2014

Needham, MA (PRWEB) January 08, 2014

In a recent interview with the Vice President and Chief Medical Officer at one of the world’s leading international research institutes, we discussed the inability of big pharmaceutical companies to effectively discover or bring new drugs to the market, and the consequent issues this brings to the industry. We agree with the interviewee that if big pharmaceutical companies do not improve their pipeline of compounds, research and development will continue to decline.

Not too long ago, the pharmaceutical industry was in a stage of rapid innovation. But this seems to have changed as big pharmaceutical companies are now struggling with drug discovery for several reasons, as outlined below.

All large companies eventually reach a point where their history creates a foundation of bureaucracy that tends to prevent innovation. In established organizations, the avoidance of risk is more important than the need to develop something new -- since there is already a history of success and financial stability.

Even though start-ups or smaller organizations have fewer resources to allocate to research and development, these businesses traditionally have more successful innovation than large companies. This is often because scientists are more passionate and hungry to succeed in smaller organizations. Success in smaller organizations is measured by the ability to ‘stay alive’, which often goes beyond the ability to follow the rules of a large bureaucracy. The future of the small company depends on the success of the individual and vice versa. Therefore, there is a greater incentive for employees to work harder and longer hours, and to innovate along the way.

This realization, combined with a decrease in overall funding, has led to financial cuts in research and development programs in the industry. In the past few years, big pharmaceutical companies have made severe budgetary cuts. According to an article by the Royal Society of Chemistry, published in 2010, Pfizer, GSK and AstraZeneca were all looking to decrease their research and development budgets by at least $1 billion in the next few years. AstraZeneca alone had planned to cut roughly 1,800 research and development positions, leaving many talented drug development scientist without a job. Unfortunately, there are not many places for these people to go.

Pharmaceutical expertise does not translate well to other industries. And, within the industry, generic firms do not need these scientists, and small pharmaceutical companies do not have the resources to employ more scientists. A few of these scientists will go on to start their own companies, but even these will most likely stall when additional funding is needed. Some scientists will go back to school for a medical or business degree, while others may leave the industry completely.

In our discussion, the Vice President and Chief Medical Officer discussed the fact that, generally speaking, big pharmaceutical companies do not have very good drug pipelines, with many of their prominent moneymakers coming off patent. During the interview, this person suggested that once this happens, “it will become virtually impossible to get something through the first proof of concept, to a study in man.” Although there are plenty of people innovative enough to drive research and development, the discovery process is bottlenecked by a lack of financing, and the scientists capable of innovation are not in the position to make new discoveries due to bureaucracies or other constraints.

The industry is trying many solutions to identify the “light at the end of the tunnel.” For example, with advancements in genomics and sequencing, and the addition of sophisticated bioinformatics, everyone is hoping to turn this field full of opportunities into commercial success.

By bringing together leading professionals in the life sciences, Cambridge Healthtech Associates™ (CHA™) believes that online communities, such as the Drug Safety Executive Council™ (DSEC™) community, will provide a platform for collaboration and discussion of ideas. Our goal is to bring conversation and solutions to prominent issues in the industry, like the one discussed here.

We welcome your feedback and comments – join us in this important discussion.

Read the full story at http://www.prweb.com/releases/2013/12/prweb11389464.htm.


'/>"/>
Source: PRWeb
Copyright©2012 Vocus, Inc.
All rights reserved

Related biology technology :

1. Elsevier Launches the New Generation SciVal, Providing Dynamic Real-Time Analytics and Insights into the Global Research Landscape
2. Huntsman Cancer Institute Uses Linguamatics I2E to Automatically Extract Insights from Clinical Pathology Documents
3. Linguamatics Launches Healthcare Product Suite to Turn Unstructured Electronic Health Record Data into Actionable Patient Insights
4. Ganeden Partner Product Wins SupplySide Insights Award
5. FDA Review in Journal for ImmunoTherapy of Cancer Offers New Insights into Cancer Immunotherapy Product Development & Clinical Evaluation
6. Mom – the Ultimate Chromatographer: Insights into HPLC and GC Chromatography
7. Mold Plagues New Florida Home Owners, Environmental Impact Assessment Company AGC Environmental Offers Them Insights on Obtaining Expert Mold Remediation and Inspection
8. Risk-based Approach to Monitoring: Deployment Insights and Lessons Learned, New Xtalks Webinar
9. BioInformatics LLC Announces New Market Report – Enhancing the Customer Experience: Insights and Life Science Supplier Rankings (13-002)
10. Ingenuity Systems IPA Provides Researchers with Genomic Insights Suggesting that Physical Activity Does Not Slow Muscle Aging
11. Distinct Bright Shares New Insights on How Cleaning Jewelry Might Be Destroying it
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/27/2016)... June 27, 2016  Global demand for enzymes ... through 2020 to $7.2 billion.  This market includes ... cleaning products, biofuel production, animal feed, and other ... and biocatalysts). Food and beverages will remain the ... increasing consumption of products containing enzymes in developing ...
(Date:6/27/2016)... ... June 27, 2016 , ... Cancer ... what they believe could be a new and helpful biomarker for malignant pleural ... Click here to read it now. , Biomarkers are components in the ...
(Date:6/27/2016)... ... June 27, 2016 , ... Rolf K. ... the faculty of the University of North Carolina Kenan-Flagler Business School ... entrepreneurship at UNC Kenan-Flagler, with a focus on the school’s international efforts, leading ...
(Date:6/24/2016)... discussions on a range of subjects including policies, debt and ... Poloz. Speaking at a lecture to the Canadian ... to the country,s inflation target, which is set by both ... "In certain areas there needs to be ... why not sit down and address strategy together?" ...
Breaking Biology Technology:
(Date:4/26/2016)... LONDON , April 26, 2016 ... a product subsidiary of Infosys (NYSE: ... to integrate the Onegini mobile security platform with ... http://photos.prnewswire.com/prnh/20151104/283829LOGO ) The integration will ... to access and transact across channels. Using this ...
(Date:4/15/2016)... 15, 2016  A new partnership announced today ... underwriting decisions in a fraction of the time ... and high-value life insurance policies to consumers without ... With Force Diagnostics, rapid testing (A1C, Cotinine and ... (blood pressure, weight, pulse, BMI, and activity data) ...
(Date:4/13/2016)... -- IMPOWER physicians supporting Medicaid patients in Central ... in telehealth thanks to a new partnership with higi. ... patients can routinely track key health measurements, such as ... when they opt in, share them with IMPOWER clinicians ... retail location at no cost. By leveraging this data, ...
Breaking Biology News(10 mins):