A Model for Success


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Product Description

Alternatives to the integrated pharmaceutical company business model are taking hold as smaller players contribute to the industry’s value chain. Some of these newer players are focusing on specific areas, such as development, while others are creating hybrid models.     The usual suspects — rising R&D costs, the introduction of genomics and proteomics, increased regulatory compliance standards, the maturing of clinical outsourcing, and technology advances — are forcing many companies, especially emerging ones, to find alternatives to the traditional integrated pharmaceutical company business model.     Industry experts say these factors are changing the value chain for the industry and providing opportunities for smaller companies. One change is toward a business model whereby a company positions itself in one section of the chain, such as development and clinical research, and partners with other companies along the chain to bring a drug through the discovery, development, and commercialization process. This was a finding of a report by consulting firm Arthur D. Little titled Unraveling the Pharmaceutical Industry…

The Development of a New Model

Experts on this topic
Barry Brand. CEO, CeNeRx BioPharma Inc., Cary, N.C.; CeNeRx is a drug- development company that develops medicines to treat diseases related to neurotransmitters and the central nervous system. For more information, visit
William Claypool, M.D. CEO and Chairman, Phoenix Data Systems Inc., King of Prussia, Pa.; Phoenix Data Systems provides full-service EDC (electronic data capture, IVR, and e-data management) solutions for the pharmaceutical industry. For more information, visit
Craig A. Collard. President and CEO, Cornerstone BioPharma Inc., Cary, N.C.; Cornerstone BioPharma is an emerging specialty pharmaceutical company that is currently focused on the development of prescription medications within the respiratory arena. For more information, visit
Laurent Fischer, M.D. President and CEO, Ocera Therapeutics Inc., San Diego; Ocera is a privately held biopharmaceutical company focused on the development of candidates to treat a broad range of gastrointestinal and liver diseases. For more information, visit
Rob Franco, Ph.D. Lead Director, Life- Sciences Business Group, PRTM Management Consultants, Waltham, Mass.; PRTM is a global management consultancy. For more information, visit
Ansbert K. Gadicke. Founder and General Partner, MPM Capital, Boston; MPM Capital is a dedicated investor in the life sciences, with committed capital under management in excess of $2 billion. For more information, visit
Jacques Mulder. Lead Principal, Pharmaceutical R&D Practice, Deloitte Consulting LLP, New York; Deloitte delivers services in four professional areas: audit, tax, consulting, and financial advisory. For more information, visit
Mazen Skaf, Ph.D. Chief Business Officer, Tracon Pharmaceutical Inc., San Diego; Tracon was founded in 2005 to develop targeted cancer therapeutics. For more information, visit