Are new inter-organisational deal networks the key to improving drug discovery and R&D productivity in the pharmaceutical industry? – Science Daily

In recent times the discovery of new drugs for independent big pharmaceutical companies has become increasingly rare. About 60% of new drug discoveries are made through mergers and acquisitions and drug licensing. Now, researchers from Ritsumeikan University, Japan, highlight recent trends in spinouts from academia and investment in the United States and Europe, predicting a promising shift in industry’s inter-organizational deal networks to improve research and development productivity in the future. Of.

Launching a new drug in the market is a challenging feat given the low chances of success during the research and development (R&D) phase and the high costs involved. In recent times, industry trends are rapidly changing to external innovation for drug discovery. With a better understanding of disease biology, decision making can be further streamlined through the effective use of scientific information.

In this finding, researchers in Japan led by Associate Professor Kota Kodama of Ritsumeikan University are uncovering how trends in inter-organizational deals are changing in the pharmaceutical industry to improve R&D productivity and drug discovery. ,The network structure of innovation creation in the pharmaceutical industry has changed with the increasing emergence of start-up companies growing out of academic and research institutions as players in the source of innovation.,” explains Dr. Kodama, discussing his investigation into these changing trends, the results of which were made available online on 27 December 2022 and published in Volume 28 Issue 3 of the journal drug discovery today On March 1, 2023.

Their research shows that the knowledge needed for successful innovation in drug discovery is often not obtained through alliance networks. Over the past decade, large research-based pharmaceutical companies have used research collaborations, innovation incubators, academic centers of excellence, public-private partnerships, mergers and acquisitions (M&A), drug licensing and corporate ventures as typical methods of external innovation. capital funds have been used. , The researchers now aim to define changes in the network structure and nature of such alliances that have occurred over the past decade to provide future strategic insights for industry and academic players involved in drug discovery.

Using data from the Cortellis Competitive Intelligence database, researchers analyzed nearly 50,000 different types of information related to pharmaceutical R&D across pharmaceutical, digital health software, veterinary drug and medical device companies to uncover trends in the creation of new drugs for human use. Identified deals. They also studied the trends of 13 largest pharmaceutical companies with annual revenue of more than US$10 billion, which saw improvement in their CAGR (Compound Annual Growth Rate) since 2015. The researchers observed that increasing CAGR is related to a significant change. In M&A related deals after 2015, it shows that M&A related deals tend to boost revenue growth for large pharmaceutical companies.

Furthermore, the number of organizations involved in inter-organizational deals is increasing annually from 2012 to 2021. Although the number of organizations involved and the number of deals are increasing, the density of deal networks is decreasing annually, suggesting that networks are becoming more disjointed. The concentration of business ties between organizations in a few sectors in the network changed to dispersion around 2015, and new networks connecting different groups began to form after 2017. These trends are an important example of how the industry landscape is slowly shifting away from traditional networks in which large pharmaceutical companies drive increased drug discovery output. Now, inter-organizational deals among more diverse players have become active and increasing R&D productivity for startups in biotechnology and pharmaceuticals.

The apparent increase in the number of academically owned spinouts of advanced technology and the expansion of investment in start-ups is a positive sign. The emergence of new chemical modalities, such as biologics, oligonucleotides and peptides that differ from traditional small molecule drug discovery, marks the remarkable changes that have taken place over the past two decades. The trend of increased funding for start-up companies in personalized drug development is beneficial for patent creation and will have a positive impact on innovation creation in the years to come. ,The presence of academia is becoming increasingly important in supporting the technologies of these start-ups, and government and private support and investment in this area is fueling innovation. Our study suggests that such medium- and long-term support may ultimately benefit the health and well-being of humankind.,” concluded an optimistic Dr. Kodama.

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