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Innovation and Commercialisation in the Biopharmaceutical Industry

Creating and Capturing Value Bruce Rasmussen, Deputy Director, Centre for Strategic Economic Studies, Victoria University, Melbourne, Australia
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.
Extent: 336 pp
Hardback Price: $157.00 Web: $141.30
Publication Date: 2010
ISBN: 978 1 84844 717 2
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  • Business and Management
  • Organisational Innovation
  • Economics and Finance
  • Economics of Innovation
  • Health Policy and Economics
  • Environment
  • Biotechnology
  • Innovation and Technology
  • Biotechnology
  • Economics of Innovation
  • Organisational Innovation
  • Technology and ICT
  • Social Policy and Sociology
  • Health Policy and Economics
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.
‘The processes of discovery, testing and distribution of new medicines have undergone radical change in recent decades, from a focus on small molecule drugs to biomedicine and related technologies. Bruce Rasmussen very effectively draws upon modern theories of the firm, data analysis, and case studies to provide important insights into the consequences of this change. He offers convincing evidence that contradicts the widely-held view that the biopharmaceutical sector has not generated considerable economic value.’
– Frank R. Lichtenberg, Columbia University, US

‘Bio- and pharmaceutical industry discovery is a distressed asset today. Why? Bruce Rasmussen’s book is a timely and very informative work, building on rich data sources and extensive economic research, on a subject of concern to us all. Is medicine discovery in permanent decline? Are the biotechnology and traditional pharma groups on a collision course, will the traditional group absorb the new, will integration take place, will a new discovery model emerge? I commend Bruce’s book to all who wish to understand what is happening.’
– David W. Anstice, Merck & Co., Inc.
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