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    Home > Active Ingredient News > Drugs Articles > Biopharmaceutical pattern changes! Industry innovation becomes more and more scattered

    Biopharmaceutical pattern changes! Industry innovation becomes more and more scattered

    • Last Update: 2019-03-19
    • Source: Internet
    • Author: User
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    In the global pharmaceutical industry, there are usually 50 to 120 acquisitions a year, through which the two merged companies become larger entities (see Figure 1) Therefore, we can reasonably assume that the biopharmaceutical industry is undergoing integration However, according to the latest research data provided by Nature magazine, this is not the case Nature analyzed the drivers and discussed their impact on the industry Figure 1: M & A activities related to innovative pharmaceutical products Non merger transaction refers to the transaction classified as M & A but will not lead to merger (such as business swap transaction, asset acquisition and asset divestiture); merger transaction refers to merger and company acquisition, leading to industry integration; excluding the transaction related to medical devices and delivery technology, generic drugs, over-the-counter products and animal health Source: iqvia pharmadeals 2018 1 Based on the analysis of the current situation of the decentralization of biopharmaceutical innovation, it is found that in recent years, the top ten enterprises in the world only account for about 40% of the total industry, which is lower than about 50% in the early 2000s After a series of major mergers and acquisitions (such as Pfizer's successful acquisition of Wyeth, Merck's acquisition of Schering plough, an American pharmaceutical company), the contribution of the top ten companies to the industry's R & D expenditure peaked at 48% in 2010 But since then, the contribution of the top ten companies to the industry's R & D expenditure has declined, from about 45% to about 40% at present Among them, R & D decentralization is more obvious Through the analysis of investment in phase I to III clinical trials in the industry, the investment share of the top ten companies dropped from 50% in 2000 to 27% in 2017 (see Figure 2a) Figure 2: decentralized analysis of the biopharmaceutical industry a: Top 10 pharmaceutical companies' share of sponsorship of phase I to III clinical trials in all commercial trials started in a specific year; b: Over time, the contribution of different groups of companies to the industry's R & D productivity, "year index" reflects the approximate value of the revenue from the approval of new drugs (new molecular entities and original biological agents) divided by the corresponding R & D expenditure; c: The share of overall revenue in new product sales has been declining The figure shows the total annual revenue from new products (excluding generic drugs, over-the-counter products and bio generic drugs) through product purchase strategy, including company and product acquisition, cooperative revenue including license and joint venture; for cooperative products, part of the sales may be attributed to The sponsor company, and part of it belongs to the Licensee Source: clinicaltrials.gov and evaluatepharma 2018 To sum up, large pharmaceutical companies will reduce the proportion of new products by themselves Charts of R & D output and productivity over the past 20 years (see Figure 2b) show that the top 10 companies were the driving force of R & D output in the pharmaceutical industry until the beginning of the 21st century Monoclonal antibody (mAb), a new way, has gradually shifted from the periphery of drug innovation to the focus center Large pharmaceutical companies have also involved mAb in a series of transactions in the 1990s and the early 21st century, and achieved different degrees of success Subsequently, between 2005 and 2011, the industry experienced a slowdown in growth (at that time, the general tightening of capital availability intensified), which also led to a real crisis and multiple restructuring of R & D productivity Since 2012, we have also observed signs of innovation rebound in the biopharmaceutical industry, and the medium-sized biopharmaceutical companies ranking outside the top 10 in the world have played an important role Further in-depth observation of the trend of new products and their revenue can be seen that in the 1990s, the share of new drugs approved by FDA in the top ten companies exceeded 50% Since then, the proportion has steadily declined to 26% in the past three years The share of profits from external sources in total pharmaceutical revenue is also increasing year by year (see Figure 2C) In 1997, the income from purchasing drugs accounted for 10% of the total sales of drugs, while in 2017, it rose to 45% 2 Several factors seem to be driving the decentralization of biopharmaceutical innovation First, there are more companies engaged in biopharmaceutical innovation than in the past The number of companies with pipeline or revenue of drug product line has increased from less than 300 before 2000 to more than 1000 in recent years These companies also cover a wider range of diseases and medical needs than in the past, for example, many small companies are committed to developing products for a variety of rare diseases Secondly, due to the expansion of technology platform and the increasing autonomy of biomedical research and development, small companies can achieve success Third, the maturity of the outsourcing drug development service industry, which provides manufacturing and clinical trial behaviors, also helps and promotes small pharmaceutical companies to manage large drug development plans more comprehensively with the least infrastructure Now, R & D capability and management capability can be easily acquired through partnership and outsourcing, which also means that the relative benefits of company size for drug development have been reduced Finally, the increased availability of capital market funds in recent years also means that small companies can further market their products 3 The Enlightenment of the decentralization of biopharmaceutical innovation one of the important meanings of mastering the current trend and driving factors of the decentralization of biopharmaceutical is that it is wrong to only consider the leaders or large pharmaceutical companies in the industry and try to analyze the current situation of the R & D productivity of the global pharmaceutical industry As we have observed in the past, overall R & D productivity at the biopharmaceutical industry level has been declining for a long time (with some recent signs of improvement) However, individual companies can surpass the market average and bring valuable innovative drugs to this market, which often come from small pharmaceutical companies at present For smaller companies, the choice of individual actions is easier to achieve than in the past, especially when the patient population is moderate However, given the growing complexity of biopharmaceutical product development and commercialization, such an approach is not always the most valuable and creative option Similarly, the decentralization of biopharmaceutical innovation is of great significance for large biopharmaceutical companies seeking cooperation with small companies Although the historical experience of large companies in traditional development and manufacturing capacity and the advantages of the maturity of drug development service department are gradually decreasing, large companies still have comparative advantages They benefit from having larger data, access to innovative opportunities through new forecasting methods, and ways and channels to improve R & D productivity Larger companies tend to be more advanced in collecting and using real-world clinical data, and they have more experience in using new clinical trial designs such as adaptive trials In fact, in the field of biopharmaceutical innovation, the combination of expertise, global influence, regulatory capacity and reputation can create huge advantages Future developments in digital business capabilities, including digital patient engagement and digital sales interactions, can create more opportunities for partnerships as payment strategies for future treatments become more complex and trials are expected to continue based on future value In general, larger companies may have some unique ways to articulate the scale and scope of their advantages (compiled by Sina pharmaceutical / fan Dongdong)
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