Abstract
The formerly fully integrated pharma value chain is disaggregating given the emergence of highly capable and specialized research and clinical development service providers. The options range from outsourcing, out-licensing, and in-licensing, strategic partnerships and co-development. These concepts are discussed in detail and illustrated with cases from industry. We conclude with an example of how a breakthrough innovation can best be commercialized by a small pharma company using those make-or-buy options.
“The process of making a new medicine is a marathon that requires endurance and commitment. We cannot reach our goals without the help of partners from the inside and the outside the company.”
Tadataka Yamada,
Former Chief Medical & Scientific Officer, Takeda
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
This case study was generously provided by Dr. Antal Hajos, CEO Linical Europe.
- 2.
This case study was generously provided by Dr. Pierre A. Morgon, CEO AJ Biologics.
- 3.
This case study was generously provided by Dr. Marc Müller, InterPharmaLink.
Bibliography
Chakma, J., Calcagno, J. L., Behbahani, A., & Mojtahedian, S. (2009). Is it virtuous to be virtual? The VC viewpoint. Nature Biotechnology, 27(10), 886–888.
Chesbrough, H. (2003). Open innovation: The new imperative for creating and profiting from technology. Boston, MA: Harvard Business School Press.
Courtois, Y., McPhee, D., & Rerolle J.F. (2012). Profitability and royalty rates across industries: Some preliminary evidence. KPMG International. https://www.kpmg.com/Global/en/IssuesAndInsights/ArticlesPublications/Documents/gvi-profitability-v6.pdf. Accessed 27 April 2016.
Festel, G., & Polastro, E. (2002). Dritte arbeiten häufig kostengünstiger. Chemische Rundschau, 55(13), 7.
Flanagan, M. (2015). 2015 In review: Pharma’s largest in-licensing deals – cancer continues to carry the day. FirstWord Pharma, http://www.firstwordpharma.com/node/1339317?tsid=33#axzz40sjGtMpV. Accessed 27 April 2016.
Greis, N. P., Dibner, M. D., & Bean, A. S. (1995). External partnering as a response to innovation barriers and global competition in biotechnology. Research Policy, 24, 609–630.
Kermani, F. Z. (2014). Drug discovery partnerships between UK CROs and the Swiss pharma sector. Pharmaceutical Technology Europe, 26, 8–11.
Kollmer, H., & Dowling, M. (2004). Licensing as a commercialisation strategy for new technology-based firms. Research Policy, 33, 1141–1151.
Little, A. D. & Solvias. (2002, June). External synthesis services for research and development in the pharmaceutical industry. Market Study.
Megantz, R. C. (2002). Technology management – developing and implementing effective licensing programs. New York: Wiley.
PharmaSource. (2017). http://www.pharmsource.com/market/how-big-is-the-market-for/
Recombinant Capital. (2005). Analyst’s notebook. Trends. http://www.recap.com/consulting.nsf/ANB_tab_trends?openform. Accessed 11 Feb 2005.
Windhover. (2000). Opportunism Knocks. Windhover’s review of emerging medical ventures. Vol. 5, No. 4, p. 32. http://www.windhover.com/contents/monthly/exex/e_2000900064.htm. Accessed 19 Dec 2004.
Windhover. (2003). In-licensing: Still a difficult model. Windhover’s review of emerging medical ventures. Vol. 8, No. 10. http://www.windhover.com/contents/monthly/exex/e_2003900172.htm. Accessed 19 Dec 2004.
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2018 Springer International Publishing AG, part of Springer Nature
About this chapter
Cite this chapter
Gassmann, O., Schuhmacher, A., von Zedtwitz, M., Reepmeyer, G. (2018). The Make-or-Buy Challenge: How to In- and Outsource Innovation. In: Leading Pharmaceutical Innovation. Springer, Cham. https://doi.org/10.1007/978-3-319-66833-8_5
Download citation
DOI: https://doi.org/10.1007/978-3-319-66833-8_5
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-66832-1
Online ISBN: 978-3-319-66833-8
eBook Packages: Business and ManagementBusiness and Management (R0)