This path-breaking book addresses the ongoing implications for traditional pharmaceutical companies and biopharmaceutical start-ups of the realignment of the industry knowledge-base. The theoretical approach draws on the modern theory of the firm and related ideas in order to better define the concept of the business model, which is employed to guide the case studies and empirical analysis in the book.
The author shows that while traditional pharmaceutical companies have successfully adjusted their business models to meet the challenges of biotechnology, biopharmaceutical start-ups have experienced more problems. Despite the poor financial performance of the vast majority of these firms, the biopharmaceutical sector as a whole has created significant value. However, this has been captured disproportionately by a handful of large, fully-integrated biopharmaceutical firms and, to a lesser extent, by the largest dozen pharmaceutical companies.
This highly focused book will be a captivating read for innovation and biopharmaceutical industry analysts, as well as advisers formulating policies to support the development of the biopharmaceutical sector. Academics working on innovation and biotechnology, as well as scientists engaged in research in the life sciences, will also find this book of particular interest.
Bruce Rasmussen, Deputy Director, Centre for Strategic Economic Studies, Victoria University, Melbourne, Australia
Contents: 1. Overview Part I: Firms, Networks and Business Models 2. Lessons from the Modern Theory of the Firm 3. Open Innovation and the Networked Firm 4. The Business Model Part II: The Rise of Biotechnology: New Foundations for Biopharmaceuticals 5. Drug Discovery and Development Technologies 6. Economics of Drug Development: Process, Uncertainties and Cost Part III: Responding to the New Knowledge Base: Diverse Business Models 7. Response of Pharmaceutical Companies to Biotechnology: Structure and Business Models 8. Biopharmaceutical Company Business Models 9. An Overview of Trends in Biomedical Alliances 10. Trends in Biopharmaceutical Alliances for Key Business Models Part VI: Four Case Studies 11. Case Studies in Biopharmaceutical Business Models 12. Biopharmaceutical Value Chains 13. Bioinformatics: A Case Study in the Development of a Platform Technology Part VI: Value Creation and Capture: Implications 14. Single Firm Case Study: Starpharma 15. Creating and Capturing Value in the Biopharmaceutical Sector 16. Implications for Industry Structure References Index