Could Open Innovation Rescue the Pharma Pipeline?
Patent losses and R&D cutbacks are severely hitting the ability of drug companies to fill their pipelines. They are losing market value, shedding jobs and witnessing a dramatic decline in growth (as measured by sales, stock price appreciation and profit for example).
As a result, cooperation and open innovation will become more widespread in the pharma industry according to a new report by GBI Research – Re-evaluating Pharmaceutical Pipelines – Emerging Markets, Biologics and Orphan Drugs to Shape Future Decision Making.
The report also highlights where some companies have become more receptive to joint ventures, partnerships and cooperative alliances. For example, Merck’s new non-profit translational research centre in San Diego. But the industry needs more collaboration.
The Spotlight on Open Innovation
The research goes on to say that the open innovation trend will continue at least for the next decade as drug companies invest in science hubs in India and China. And as awareness of OI picks up the report predicts that more universities and research institutions will accelerate their tech transfer efforts.
For many who operate in the open innovation landscape the report will hardly come as a big surprise. But such powerful research will reinforce the notion that pharma needs to become more collaborative. It may also help to convince those companies that are still wedded to traditional closed innovation of the need to be more receptive to working with external partners. The benefits include:
- Diversifying knowledge which can create solutions beyond the constraints of a company’s R&D abilities.
- More shots on target which can lead to bigger pipelines.
Isn’t it time for more companies to embrace the promise and potential of open innovation?
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