A new Economist Intelligence Unit survey sponsored by CRO Quintiles highlights the urgent need for biopharmaceutical industry innovation. The global survey comes as the biopharma sector reaches the patent cliff—this year and next, seven of the world’s 15 top-selling drugs, accounting for nearly $50 billion in sales in 2009, will go off-patent.
To investigate corporate strategies in this challenging environment, senior executives in the life sciences industry were surveyed. The findings show innovation is key to bringing new, more effective products to market to treat diseases.
The survey also indicated executives were ambivalent about the quality of their existing innovation programs—less than half said their R&D model was capable of meeting their company’s needs, and only about half said changing their innovation processes was a leading priority.
“The findings highlight the urgent need for data-driven innovation as companies work to navigate the challenges of the New Health,” said Paula Brown Stafford, president of Quintiles Clinical Development. “The best innovations will come from firms who look creatively at new technologies to turn their data and information into insight, pursue open partnerships to gain additional expertise and make better decisions faster.”
Titled The innovation imperative in biopharma, the report showed that:
The survey concluded that for companies in the life sciences industry, improving innovation is essential. They must reinvent how they innovate. But high costs, complex regulations and long development time scales conspire to make this difficult. For those ready to improve, though, the habits of the most successful innovators provide important lessons:
A total of 282 senior executivesfrom the life sciences industry participated in the survey, including respondents from pharmaceutical companies (39%), biotech (21%), medical device manufacturers (22%) and service providers (14%); 58% of respondents represent the C-suite or above. Geographically, 32% are based in the Asia-Pacific region, 31% in North America and 26% in Western Europe. For company size, 43% represented companies with more than $1 billion in annual revenue; 24% work for companies with more than $5 billion in revenue.