The drug discovery revolution: are you winning?

Co-Authored by Mo Oishi.

This posting is based on a Quarry-sponsored study of the U.S. healthcare industry, specifically focusing on the Research Triangle Park (RTP) region of North Carolina.

It’s becoming increasingly clear that big pharmaceutical companies can no longer rely on blockbuster drugs as a sustainable Research & Development (R&D) or business model. One of the outstanding questions is “what’s next?” Another one is “how can you ensure your organization becomes one of the winners in the revolution?”

Successful organizations will need to work to service smaller patient segments that have previously been under-served. This will result in the development of more drugs and more therapies for a broader range of diseases. By most accounts, this approach of “more-eggs-in more-baskets” will help defray risk, and will result in more drugs in the pipeline. As referenced in Advances in the Treatment of Rare Diseases, if the proliferation and delivery pace of “orphan drugs” (i.e. products that treat rare diseases affecting fewer than 200,000 people) is any indication, this drug-discovery strategy is already firmly in place in many companies, and helping to fuel the revolution.

In response to this strategy, most pharmaceutical companies are moving to slice monolithic R&D departments into smaller, more entrepreneurial teams. While the specifics of how this notion is realized will vary by company, some common themes have emerged.

These R&D teams will be:

• More focused, typically around specific therapeutic areas
• More autonomous, with 3 to 5 year budgets, and resemble start-ups and biotech companies, both in terms of focus and spirit.

Even more intriguing, business leaders in this space have noted that the development of novel forms of relationships between pharmaceutical companies and start-ups will continue. These could be project partnerships, funding agreements, outright acquisitions, licensing agreements or marketing agreements.

Are we on the verge of the next wave of healthcare innovation? Will pharmaceutical companies relinquish control over their R&D units? Will the patient be better served with faster, more laser-sharp drug discoveries? Unlike many revolutions of our past, there will likely be few losers, but many winners who are able to capitalize and take advantage of these opportunities.

In our North Carolina-specific study, we have identified 5 key issues and 3 areas of significant opportunity for organizations interested in growing their business in the healthcare field.

Download the full Healthcare Report (free).

What about the Patient? Exploring 3 New Opportunities for RTP to lead the U.S. Healthcare Revolution