An Exploratory Study on the Vertical Disintegration and Innovative Business Model of Pharmaceutical Industry
Date Issued
2007
Date
2007
Author(s)
Hsueh, Bi-Ling
DOI
zh-TW
Abstract
For many decades, pharmaceutical R&D has been a fully integrated process where the pharmaceutical company owned and conducted almost every single step of the R&D value chain. Over the recent past, however, the productivity in pharmaceutical research and development faces intense pressure. R&D expenditures of the companies have almost tripled for a decade ago. At the same time, the number of new drug approvals has droped. To share R&D risks and decrease the cost, pharmaceutical companies start to collaborate with external partners and outsouce activities during the innovation process. These partners include contract research organization(CROs)、contract manufacturing organizations(CMOs), or any other organization that provides pharmaceutical company then reimburses the service provider with a fee in return for the services received. It accelerates the vertical distegration in the pharmaceutical industry.
Specifically, the present study tries to answer the following three questions:
1. What are the reasons of vertical distegration of the pharmaceutical industry and how it works?
2. What is the vaules of vertical distegration in the pharmaceutical industry?
3. What effects will the vertical distegration ito the pharmaceutical industry?
This research concludes that the vertical specialization emerged in ther pharmaceutical industry dues to traditional large pharmaceutical companies seeks external partners tohare R&D risks and cost. During this process, specialty pharma emerged by “out-licensing product” from large pharmaceutical companies. The pharmaceutical industry shifts from vertical integration to distegration gradually, but, due to industrial characters, the shift process is relatively slow. Besides, the CROs and CMOs provide the opportunities to biotechnology companies to market their drugs. Result in collaborated and competive situation in the pharmaceutical industry.
Subjects
製藥產業
垂直分工
交易成本
專業代工
Pharmaceutical Industry
Vertical Disintegration
SDGs
Type
thesis
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