Big Pharma is running out of patented blockbusters, CROs for clinical trials phase 2 and 3 had a boom year in 2009 (!), CROs for phase 1 or pre-clinic and Biotechnology companies are struggling to survive without any financing for early stage companies or early stage drugs.
Does that make sense? Unfortunately it does. Big Pharma is still not (with the famous exceptions) able to use and digest the discoveries of the modern biotechnologies into their product portfolios. The culture is limited to “mega mergers” and “survival mode” not prone to agility and innovation. Or as a Biotech CEO after hearing about the next mega-merger put it: “The dinosaurs are moving deeper into the swamp.”
…and the “valley of death” for early biotechnology discoveries and their companies is widening and not shrinking. How could it be changed?
Big Pharma should stop all their internal preclinical research immediately as it has not produced any significant innovations over the last 10-15 years and rather spend all the money on financing phase 1 and earlier biotech products and companies. But do not buy the company and try to implement the “Big Pharma”-culture. Keep the innovative spirit alive. Let them do their own thing. Just help with clinical studies (clinical study directors are an un-payable, scarce resource to most Biotechs), marketing and lobbying – today’s core competencies of the pharmaceutical industry.
Ingo studied business administration and economics at Kiel University where he received a PhD in economic policy and also earned an MBA from the University of Southern California in Los Angeles, USA. Visit www.koenigconsultants.ca