Co-creating health for humanity: new trends in inter-organizational pharmaceutical agreements

    Researchers from Ritsumeikan University analyze changing trends in pharmaceutical industries to shed light on the role of inter-organizational collaborations in advancing drug discovery and innovation. Credit: Kota Kodama of Ritsumeikan University

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

    In this quest, Japanese researchers led by Associate Professor Kota Kodama of Ritsumeikan University uncover how trends in interorganizational agreements in the pharmaceutical industry are changing to improve R&D productivity and drug discovery.

    “The structure of the innovation creation network in the pharmaceutical industry has changed with the increasing emergence of start-ups from universities and research institutes as actors at the source of innovation”, explains the Dr. Kodama, while discussing their investigations into these developments. trends, the results of which were published in Drug discovery today.

    Their research suggests that the knowledge needed for breakthrough innovation in drug discovery is most often obtained through networks of alliances. 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 venture capital funds as typical methods of external innovation. .

    The researchers now aim to define the changes in the network structure and nature of these alliances that have occurred over the past decade in order to provide future strategic insights to industrial and academic actors involved in drug discovery.

    Using data from the Cortellis Competitive Intelligence database, researchers identified nearly 50,000 agreements of various types related to pharmaceutical R&D across pharmaceutical, digital health software, animal drug and device companies to discover trends in the creation of new medicines for human use.

    They also studied the trends of 13 of the largest pharmaceutical companies with annual revenues of more than US$10 billion, which saw an improvement in their CAGR (compound annual growth rate) since 2015. The researchers noticed that the CAGR rise was correlated with significant change. in M&A-related deals after 2015, indicating that M&A-related deals drive Big Pharma’s revenue growth.

    In addition, the number of organizations involved in inter-organizational agreements increased each year from 2012 to 2021. Although the number of organizations involved and the number of agreements may increase, the density of agreement networks decreases each year, which suggests that the networks are becoming more and more numerous. not cohesive.

    The concentration of business relationships between organizations in certain areas of the network turned into dispersion around 2015, and new networks linking different groups began to form after 2017. These trends are an important illustration of how the landscape of the industry is gradually moving away from the traditional network. in which the big pharmaceutical companies have stimulated the production of drug discovery. Today, inter-organizational agreements between more diverse players have become active and are driving R&D productivity for startups in biotechnology and pharmaceuticals.

    A sharp increase in the number of high-tech spin-outs owned by universities and expanding 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, indicates remarkable changes that have taken place over the past two decades.

    The trend of increasing funding for start-up companies in the development of personalized drugs is beneficial for the creation of patents and will have a positive impact on the creation of innovations in the years to come. “The presence of academia to support the technologies of these start-ups becomes very important, and public and private support and investment in this area stimulates innovation. Our study shows that such support in the medium and long term can ultimately benefit the health and well-being of mankind,โ€ concludes Dr. Kodama.

    More information:
    Kentaro Yashiro et al, Recent Trends in Interorganizational Agreement Networks in the Pharmaceutical and Biotechnology Industries, Drug discovery today (2022). DOI: 10.1016/j.drudis.2022.103483

    Provided by Ritsumeikan University

    Quote: Co-Creating Health for Humanity: New Trends in Inter-Organizational Pharmaceutical Agreements (2023, January 24) Retrieved January 24, 2023 from humanity-trends-interorganizational.html

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