The pharmaceutical industry is facing unprecedented challenges and a significant degeneration in the R&D productivity. This is the primary reason that the innovation challenge in the pharmaceutical industry is facing a troubled and an uncertain future.
Moreover, the performance pointers uncover that the most critical test for the pharmaceutical business is the constant decay and waning of R&D profitability. Surprisingly, the lack of R&D productivity is something not new. However, pharmaceutical industry is making utmost efforts for more than two decades to bridge the innovation gap among pharmaceutical and R&D sector but failed to do so.
The pharmaceutical industry and R&D productivity has now transformed into a hegemonic critical challenge. Therefore, there is greater need to cater the rising challenge; pharmaceutical companies are taking strong, innovative and strategic initiatives to minimize the gap between two sectors.
Many global leading pharmaceutical industries are making utmost efforts in order to implement targeted initiatives to accelerate the pace of change. Pharmaceuticals like GlaxoSmithKline utilizes a model where biotech accomplices are contributing in extensive research trials. On the other hand, Sanofi is forcefully externalizing R&D what’s more, making substantial acquisitions of biotech organizations, e.g., Genzyme.
Innovation at Novartis
Midst of all the challenges that pharmaceutical organizations are currently facing, Novartis is struggling to explore some innovative ways to improve life. The organization is improving innovation in R&D to address some challenging healthcare issues with breakthrough treatments. To improve productivity and profitability, the development teams are making relentless efforts to introduce medicines with significant potential such as Entresto for heart failure and Cosentyx for psoriasis.
Additionally, their major contribution to R&D industry includes the introduction of advanced immuno oncology therapies. The consolidated innovative work endeavors in 2015 yielded 20 noteworthy endorsements and 14 noteworthy entries alongside the introduction of 3 intraocular lens for waterfall surgery. The pharmaceutical organization-Novartis has spent 8.9 billion USD on R&D, which is a major milestone achieved.
The firm has further noteworthy insights to move down its R&D model. Autonomous investigation demonstrates the association’s hit rate is unrivaled, with the likelihood of progress from preclinical to endorsement in the period 2007-11 being around 5 times level higher than the business normal. Today, Novartis has one of the business’ greatest and most encouraging pipelines, with 139 ventures in clinical improvement with more than 73 New Molecular Entities (NMEs).
Despite of the serious efforts made by Novartis, the overall contribution of the pharmaceutical industry towards R&D productivity is low. In effect, the business is treading water in the battle to convey better profits for the billions of dollars furrowed into the chase for new medications every year.