The moderating role of absorptive capacity and the differential effects of acquisitions and alliances on Big Pharma firms' innovation performance

The pharmaceutical productivity gap - Incremental decline in R&D efficiency despite transient improvements

Rising research and development costs, currently exceeding $3.5 billion per novel drug, reflect a five-decade decline in pharmaceutical R&D efficiency. While recent reports suggest a potential turnaround, this review offers a systems-level analysis to explore whether this marks a structural shift or transient reversal. We analyzed financial data from the 200 largest pharmaceutical firms, novel drug approvals, and more than 80 000 clinical trials between 2012 and 2023. Our analysis revealed that despite recent stabilization, the pharmaceutical industry continues to face challenges, particularly due to elevated late-stage clinical attrition, suggesting that a sustained turnaround in R&D efficiency remains elusive.

Business Risk Mitigation in the Development Process of New Monoclonal Antibody Drug Conjugates for Cancer Treatment

Recent developments aim to extend the cytotoxic effect and therapeutic window of mAbs by constructing antibody-drug conjugates (ADCs), in which the targeting moiety is the mAb that is linked to a highly toxic drug. According to a report from mid of last year, the global ADCs market accounted for USD 1387 million in 2016 and was worth USD 7.82 billion in 2022. It is estimated to increase in value to USD 13.15 billion by 2030. One of the critical points is the linkage of any substituent to the functional group of the mAb. Increasing the efficacy against cancer cells' highly cytotoxic molecules (warheads) are connected biologically. The connections are completed by different types of linkers, or there are efforts to add biopolymer-based nanoparticles, including chemotherapeutic agents. Recently, a combination of ADC technology and nanomedicine opened a new pathway. To fulfill the scientific knowledge for this complex development, our aim is to write an overview article that provides a basic introduction to ADC which describes the current and future opportunities in therapeutic areas and markets. Through this approach, we show which development directions are relevant both in terms of therapeutic area and market potential. Opportunities to reduce business risks are presented as new development principles.

Time to reimbursement of novel anticancer drugs in Europe: a case study of seven European countries

BACKGROUND

Time to reimbursement (TTR) of new anticancer medicines differs between countries and contributes to unequal access. We aimed to investigate TTR of new anticancer medicines and explore factors influencing the reimbursement process in seven high-income European countries.

MATERIALS AND METHODS

We carried out a retrospective case study of anticancer medicines with European Union Market Access (EU-MA) and a positive Committee for Medicinal Products for Human Use opinion from 2016 until 2021 with subsequent national reimbursement approval (NRA). The National Health Technology Assessment (HTA) and reimbursement websites of Germany, France, UK, the Netherlands, Belgium, Norway and Switzerland were used to identify TTR, defined as time from EU-MA to NRA. Additionally, we investigated medication-, country-, indication- and pharma-related factors potentially influencing TTR.

RESULTS

Thirty-five medicines were identified for which TTR ranged from -81 days to 2320 days (median 407 days). At data cut-off, 16 (46%) were reimbursed in all seven countries. Overall, the shortest TTR was in Germany (median 3 days, all medicines reimbursed <5 days). The time limit for reimbursement of 180 days stated by the Council of European Communities after the EU-MA (EU Transparency Directive) was met for 100% of included medicines in Germany, 51% in France, 29% in the UK and the Netherlands, 14% in Switzerland, 6% in Norway and 3% in Belgium. The TTR was significantly different between countries (P < 0.001). In multivariate analysis, factors associated with shorter TTR were higher gross domestic product (GDP), absence of a pre-assessment procedure and submission by a big pharmaceutical company.

CONCLUSIONS

TTR of anticancer medicines varies significantly between seven high-income European countries and leads to inequality in access. Among explored medication-, country-, indication- and pharma-related factors we found that a high GDP, the absence of a pre-assessment procedure and submission by big pharmaceutical companies were associated with shorter TTR.

Small pharma vendor management practices in clinical trials: A case study within Faron Pharmaceuticals

Many small pharmaceutical companies find that they lack the resources, knowledge and expertise of the regulatory landscape for adequate vendor management in clinical trials, making the organization vulnerable. Recent research suggests that some pharmaceutical companies have found themselves out of compliance with ICH, FDA or EMA guidelines. This paper aims to perform a comprehensive review of the regulatory landscape for vendor selection, oversight and ongoing evaluation in clinical trials. In addition, the case study performed studies the practices recently implemented at small pharmaceutical company Faron Pharmaceuticals to assess regulatory compliance and identify any potential best practices. Faron Pharmaceuticals conducted a process improvement activity at the beginning of 2022 to improve the vendor selection, oversight and evaluation of their clinical trial partners. The results of this case study indicate that Faron Pharmaceuticals' processes are regulatory compliant, suggesting that QTLs, KPIs, SOPs and communication plans are effective vendor oversight mechanisms for small pharmaceutical companies to utilize.

Partnership agreements for regenerative medicines: a database analysis and implications for future innovation

Aim: Partnerships have been leveraged to advance the regenerative medicines (RMs) development. This study analyzed the evolution of partnership landscape for regenerative medicines (RMs). Methods: Partnership agreements publicly announced from January 2014 - June 2020 were described. Results: 1169 partnership agreements with total amount of US$63,496 million were identified. Most agreements concerned RMs that were for oncology (25.3%), in the discovery or preclinical phase (66.9%) and gene-based products (45.3%). The most common partnership type is collaborative agreements without licensing. The partnerships between 'biotechnology companies and not-for-profit organizations' represented the largest number (n = 416; 35.6%). 'Big Pharma' preferred collaboration and licensing agreements with a higher amount. Conclusion: Collaborations between highly specialized players with complementary expertise promote the successful translation of scientific discovery to RMs.

Determinants of radical drug innovation: a systematic literature review

Radical drug innovations are of great importance to pharmaceutical firms and public health. Understanding the determinants involved in successful radical drug innovations is key to increasing this type of output in the future. The objective of this review is to search the literature for key firm-level determinants of radical drug innovation. Following a systematic literature review approach, we considered more than 4100 peer-reviewed journal articles and PhD theses, of which we included 38 in the narrative synthesis. To guide the review, we use Crossan and Apaydin’s (J Manag Stud 47:1154–1191, 2010) model of firm-level determinants of innovation for the first time within the pharmaceutical industry, which is unique due to the risks, costs, and time frames associated with radical drug innovation. We focus on three groups of determinants: leadership, managerial levers, and business processes. We find the following to be particularly important for radical drug innovation: external knowledge sourcing (managerial lever); internal knowledge management (managerial lever); ability of top leaders to innovate, as determined by educational background and professional experience (leadership); and leaders’ focus on shaping innovation and performance cultures (leadership). We offer a conceptual framework of critical determinants of radical drug innovation and highlight managerial implications. We also discuss gaps in radical drug innovation research and provide suggestions for future study. Many of the findings discussed in this paper are contradictory because they rely on different definitions and measures, which inhibits our full and accurate understanding of radical drug innovation development. More research is needed to address untested measures of radical drug innovation.

Determinants of Innovation Cooperation Performance: What Do We Know and What Should We Know?

The involvement of firms in innovation cooperation with different partners has become a widespread phenomenon in the contemporary business landscape. Our paper provides a review of extant alliance, innovation, open innovation and inter-firm collaboration literature and organizes it based on a conceptual framework featuring three levels of analysis: (a) the dyadic level, (b) the network level, and (c) the location level. The article identifies roadmaps in each of these areas and also highlights existing gaps in the present understanding of innovation cooperation. Thereby, it outlines a research agenda by identifying key research questions and issues in the areas where further research is needed and encouraged.