Rethinking innovation in pharmaceutical R&D

Ann Baker
Jasween Gill

DOI:https://doi.org/10.5912/jcb147

Abstract:

The pharmaceutical industry is facing a challenge to be productive. One of the solutions to this problem is for the industry to better harness innovation to deliver more and better drugs through the pipeline. But what is innovation and how can it deliver higher performance through more valuable drugs? Historically, pharmaceutical innovation has been seen to be firmly rooted in discovery. The focus has been on the pursuit of first-in-class products based on new targets. However, new research by CMR International and Accenture challenges the view that investment in this type of innovation alone will solve the productivity gap. The research shows that projects based on new targets (no public data are available on the target and no drugs have been developed for it) are slower and less likely to get to market than those based on known targets. (Either some public data are available but the company has not previously worked on the target, or the company has previously worked on and has experience with the target.) Hence, they substantially increase the risk in pharmaceutical research. In addition, there is evidence that later entrants based on known mechanisms and designed specifically to be best in class often displace first-in-class products in the marketplace. Based on these findings and on wider research into what makes high-performing businesses tick, Accenture believes that companies pursuing high performance need to rethink their innovation strategies. Companies must take a broader view of how and where they innovate. Applying novel approaches throughout the organisation and across the entire R&D process may be the true key to higher levels of productivity. Innovation in discovery is clearly important and the portfolio needs to be carefully balanced to maintain risk within acceptable limits and to deliver expected levels of output. But it is not in itself sufficient.

Keywords:organisational innovation ,pipeline challenges ,scientific innovation ,R&D ,investment ,best-in-class products ,first-in-class products ,risk management ,en ,