Can intelligent cuts in drug R&D ease the pain?
When stock plunges, drug discovery budgets shrink. Survival is all about making the right go, no-go decisions as early as possible.
Market expectations for sustained high annual growth from pharma remain high, despite shrinkage in drug discovery budgets. Smaller biotechs are also hit badly by the credit crunch as most are funded by raising revenue from capital markets rather than from selling products.
The pressure falls on R&D divisions to churn out multiple compounds each year that will generate enough revenue to offset products with expiring patents. "It's all about making the right go, no go decisions as early as possible in the process," says Phil Gould, Managing Director of Jadara Pharma, "before you've spent USD1 billion on the 'wonder drug' that only makes it halfway." As a former head of product introduction at GlaxoSmithKline, Gould knows that success hinges on the ability to focus full capacity on the most promising projects and cut out the rest.
See our Intelligent Information for Life interview with Phil Gould, Managing Director of Jadara Pharma.
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