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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
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