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1 – 10 of 103Isidre March‐Chorda and Rosa M. Yagüe‐Perales
The main purpose of this study is to identify features and trends shaping the business models currently prevailing in the Canadian biopharma industry, by disaggregating the…
Abstract
Purpose
The main purpose of this study is to identify features and trends shaping the business models currently prevailing in the Canadian biopharma industry, by disaggregating the business model analysis into four key areas: value creation, investment strategy, business strategy, success factors
Design/methodology/approach
Results arise from an empirical fieldwork of qualitative nature, undertaken by the end of 2004, involving deep interviews to a broad variety of key stakeholders of the biopharma industry in the Quebec region, including biopharma firms, large pharma firms, venture capital funds, research centers and recognized experts from consultancy firms and Universities.
Findings
Biopharma firms encounter difficulties to bridge the gap between the research innovation focus to the large scale production focus. The biopharma firms need to announce achievable and promising hits in the near future, mainly by filing patents and also through scientific publications, and making believable their prospects to reach the release phase. Venture capitalists and private investors claim for original, innovative and marketable results, keeping away from just imitative enterprises. The one product firms still largely prevail.
Research limitations/implications
Lessons learned through this fieldwork might in the future be complemented with a quantitative survey to biopharma firms in the Quebec region.
Practical implications
When funding biopharma firms, private investors claim for original, innovative and marketable results, keeping away from just imitative enterprises. The business model must evolve, and take into account the quick changes in the environment, coming either from the market or from the technologies and research streams.
Originality/value
Disaggregating the business model analysis into four key areas will make an original contribution to the limited knowledge about expectations and future prospects of the biopharma industry
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Anne S. York, Lee M. Dunham and Mark Ahn
Declining productivity and disappointing lack of profitability after three decades of biotechnology commercialization, despite enormous investment and the great promise of…
Abstract
Declining productivity and disappointing lack of profitability after three decades of biotechnology commercialization, despite enormous investment and the great promise of breakthrough solutions, have led researchers to question whether traditional horizontal acquisition strategies result in superior firm performance. Our chapter explores the answer to this question as well as to the role that disclosure plays in this important emerging industry. Using standard event study methodology, we examine differences in market performance of vertical versus horizontal acquisition strategies, along with the role played by the amount of information disclosed in the announcement. Our results suggest that vertical acquisitions underperform horizontal acquisitions, with the amount of disclosure playing a role in the market's ability to react to a firm's acquisition strategy accurately and quickly. Our results suggest that accountants who have called for additional disclosure, especially in complex industries such as biopharma, are correct in assuming that nonfinancial information plays a significant role in investors’ valuation of an acquisition event. Managers of biopharma firms, however, are cautioned that more disclosure, through the reduction of uncertainty, may result in lower market valuations for acquirers.
Francesco Calza, Marco Ferretti, Eva Panetti and Adele Parmentola
The paper aims to explore the nature of initiatives and strategies of inter-organizational cooperation to cross the valley of death in the biopharma industry.
Abstract
Purpose
The paper aims to explore the nature of initiatives and strategies of inter-organizational cooperation to cross the valley of death in the biopharma industry.
Design/methodology/approach
The authors conducted an exploratory case study analysis in the Biopharma Innovation Ecosystem in Greater Boston Area (USA), which is one of the oldest, and most successful IE in the US, specialized in the Biopharma domain, by conducting a round of expert interviews with key informants in the area, chosen as representatives of the different types of actors engaged in the drug development processes at different stages.
Findings
Main findings suggest that cooperation can contribute to surviving the valley of death by reducing the barriers within the drug development pipeline through the promotion of strategic relationships among actors of different nature, including the establishment of government-led thematic associations or consortia, agreements between university and business support structures, proximity to venture capitalist and the promotion of a general culture of academic entrepreneurship within universities.
Originality/value
The authors believe that this paper contributes to the literature by shedding light on the nature of the specific cooperative initiative the barriers in drug development and help to survive the valley of the death.
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Mark J. Ahn, Amir Shaygan and Charles Weber
Using a dynamic capabilities lens, this paper aims to study the impact of genomics generally and gene therapy specifically on the rare disease sector of the biopharmaceutical…
Abstract
Purpose
Using a dynamic capabilities lens, this paper aims to study the impact of genomics generally and gene therapy specifically on the rare disease sector of the biopharmaceutical industry.
Design/methodology/approach
In this study, 24 genomics-based, rare disease-focused biopharma companies were studied and several variables were tested with respect to enterprise value growth. The companies were analyzed as a group of rare disease firms, as well as by size.
Findings
The authors found that number of employees, revenues, number of pipeline and marketed products and retained earnings are strongly correlated (in that order) with enterprise value in rare disease focused biopharma companies. These correlations seem to be weaker as a company’s market capitalization size decreases, indicating that there tends to be increasing returns to scale.
Research limitations/implications
This study found that increasing rates of cumulative returns to enterprise value growth depends on accumulating knowledge-based employees and expanding product portfolios of disruptive genomics-based technologies for treating rare diseases. Aggregating skilled and innovative employees (especially in bigger companies) can be seen as a cumulative bolstering factor in leveraging dynamic capabilities which can be recognized, understood and transformed into commercial success (i.e. increasing returns in enterprise value). In other words, technology managers’ job is to manage not only the financial aspects of the technology but also human resources, asset configuration and strategic alliances efficiently toward faster and better innovation. Strong dynamic capabilities can be formed with the accumulation of experience, articulation and codification of knowledge and an adaptive ability to change the way they solve problems as their environment transforms.
Originality/value
This is the first study to demonstrate and measure a relationship between dynamic capabilities and enterprise value in genomics-based rare disease firms. Further, this study highlights the importance of building the capability and capacity to absorb expertise and accumulate knowledge for new product innovations and sustainable competitive advantage in industries characterized by disruptive innovation.
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Masoud Afshari-Mofrad and Ali Salim
Motivated by the huge potential of biosimilars in the near future and rapid growth of Iranian biosimilar producing firms in recent two decades, this paper aims to explore the…
Abstract
Purpose
Motivated by the huge potential of biosimilars in the near future and rapid growth of Iranian biosimilar producing firms in recent two decades, this paper aims to explore the positioning of these firms in biopharmaceutical value chain and their path of technological capability building to extract policy-relevant advice.
Design/methodology/approach
As part of a two-year research project, an online questionnaire was designed and sent to biopharmaceutical experts in Iran between May and October 2016. Respondents came from biopharmaceutical firms. Also, 12 semi-structured interviews were conducted to analyze the path of capability building in Iranian biosimilar-producing firms.
Findings
The findings show that Iranian biopharmaceutical firms (BPFs) are mostly concentrated on “pharmaceutical development,”, “drug manufacturing” and “ after-sales services’ activities.” The study also demonstrates that most BPFs in Iran are at the “assimilative” level of capability and a few of them have recently moved toward the “adaptive” level.
Originality/value
The findings show that Iranian BPFs are mostly concentrated on “pharmaceutical development,” “drug manufacturing” and “after-sales services” activities. The study also demonstrates that most BPFs in Iran are at the “assimilative” level of capability and a few of them have recently moved toward the “adaptive” level.
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Marjorie Derven and Kristin Frappolli
This paper aims to describe an innovative, blended learning approach to global general manager (GM) development at Bristol‐Myers Squibb that encompasses the career lifecycle from…
Abstract
Purpose
This paper aims to describe an innovative, blended learning approach to global general manager (GM) development at Bristol‐Myers Squibb that encompasses the career lifecycle from pre‐promotion, on‐boarding and ongoing development for GM incumbents.
Design/methodology/approach
This is a case study of a leadership development initiative that included executive sponsorship with ongoing guidance and direction from a General Manager Advisory Council, who ensured that the learning solutions were relevant, high impact and supported on the job. The approach helped global GMs build networks of support and learning through peer coaching, leveraging the diverse and complementary skills these leaders bring to their roles.
Findings
Based on their diverse backgrounds, it is essential to use multiple learning approaches to GM development and avoid a “one size fits all” mindset. Blended learning, selective use of classroom instruction and social networking tools were combined to create a comprehensive curriculum that supports organizational strategy and builds the leadership pipeline at Bristol‐Myers Squibb.
Originality/value
This case study will help other learning professionals who are charged with developing “leaders of leaders” on a global scale.
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Hassan Bruneo, Emanuela Giacomini, Giuliano Iannotta, Anant Murthy and Julien Patris
Biotech companies stand as key actors in pharmaceutical innovation. The high risk and long timelines inherent with their R&D investments might hinder their access to funding…
Abstract
Purpose
Biotech companies stand as key actors in pharmaceutical innovation. The high risk and long timelines inherent with their R&D investments might hinder their access to funding, potentially stifling innovation. This study aims to explore into the appeal of biotech companies to capital market investors, whose financial backing could bolster the growth of the biotechnology sector.
Design/methodology/approach
This paper uses a dataset of 774 US publicly listed biotech firms to investigate their risk and return characteristics by comparing them to pharmaceutical firms and a sample of matched non-biotech R&D-intensive firms over the sample period 1980–2021. Tests show that the conclusions remain consistent across diverse methodological approaches.
Findings
The paper shows that biotech companies are riskier than the average firm in the market index but outperform on a risk-adjusted basis both the market and a matched group of R&D-intensive firms. This is particularly true for large capitalization biotech, which is also shown to provide a diversification benefit by reducing the downside risk in past crisis periods.
Originality/value
This paper provides insight relevant to the current debate about the overall performance of the biotech industry in terms of policy changes and their impact on small, early-stage biotech firms. While small and early-stage biotech firms are playing an increasing role in scientific innovation, this study confirms their greater vulnerability to financial risks and the importance of access to capital markets in enabling those companies to survive and evolve into larger biotech.
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Matteo Rossi, Alkis Thrassou and Demetris Vrontis
The purpose of this paper is to analyze the phenomenon of mergers and acquisition (M & A) in high-tech sectors with a special focus on biotechnological firms. Recent years…
Abstract
Purpose
The purpose of this paper is to analyze the phenomenon of mergers and acquisition (M & A) in high-tech sectors with a special focus on biotechnological firms. Recent years have witnessed an impressive wave of M & As, but these operations, despite their popularity, have produced mixed results for their stakeholders and presented no systemic vision.
Design/methodology/approach
The paper is descriptive and the result of a secondary data-based research. Methodologically founded on the works of Rossi et al. (2011, 2013) and following an extensive literature review on M & A processes in high-tech sectors, the paper analyzes the dynamics, trends and attributes biotechnological M & As.
Findings
The biotechnology sector, over the economically turbulent past few years, faced a distinct difficulty in attracting significant investor capital. Traditional pharmaceutical companies with sufficient cash from their existing sales but facing a dried-out product and patent pipeline have acquired innovative, but cash-poor biotech firms. The findings indicate that the trends in the biotech industry make consolidation in this sector inevitable. For acquiring firms, therefore, it will be necessary to realize a rigorous process of strategic target identification, due diligence and unified post-merger integration as the only way to create a sustainable shareholder value and high firm performance.
Research limitations/implications
The limitations of the paper are a consequence of its very nature, i.e. the fact that it is a descriptive, secondary data-based research. Further, empirical research is therefore necessary to test the findings, to refine the contextual parameters involved and to prescribe target-specific action.
Originality/value
The value of the paper stems from its definition of the link between the biotech industry attributes and M & A activities, consequently offering a valuable theoretical basis for empirical development and practical application, as well as a context for prescribed actions and processes.
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Carmela Elita Schillaci, Elona Marku, Manuel Castriotta and Maria Chiara Di Guardo
This paper aims to better understand how codified knowledge that originates in organizations contributes to the generation of idiosyncratic knowledge embedded at a more expansive…
Abstract
Purpose
This paper aims to better understand how codified knowledge that originates in organizations contributes to the generation of idiosyncratic knowledge embedded at a more expansive level, such as that of an ecosystem. In doing so, the authors introduce the concept of patent ecosystems – conceived as configurations of codified knowledge advancements protected via patents.
Design/methodology/approach
Using a patent co-classification method and introducing a novel validated software, the authors map and visualize the patent ecosystem of Singapore and examine 173,597 patents published from 1995 to 2020.
Findings
Results reveal the prominent growth of Singapore’s patenting activities, capturing a patent ecosystem shift, from a more diverse knowledge configuration to a more specialized one. The codified knowledge mainly generated deals with pharmaceuticals and high-tech knowledge domains; further, newly emerging technologies such as blockchain are also noted.
Research limitations/implications
The research investigates Singapore’s context, a country in which research directions and focus areas are influenced by government interventions and leadership. Thus, future studies might examine other patent ecosystems to draw comparisons with more laissez-faire policies or ecosystems with more pronounced organic development.
Originality/value
The novelty of this research is the introduction of the concept of a patent ecosystem for advancing a more fine-grained understanding of the aggregated knowledge generated at the ecosystem level and its specific features, composition and development. The authors consider patents as “carriers” of different codified pieces of knowledge and patent ecosystems represent the configuration that emerges from connections of these elements. The novel approach can aid both researchers, practitioners and policymakers with future examinations in the field.
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Technology foresight or technology futures analysis is increasingly being recognised as a tool for planning sustainable development. Similarly, as argued by many, biotechnology…
Abstract
Purpose
Technology foresight or technology futures analysis is increasingly being recognised as a tool for planning sustainable development. Similarly, as argued by many, biotechnology could be harnessed for sustainable development. Hence, the purpose of this paper is to map out foresight activities in the Indian biotechnology innovation system.
Design/methodology/approach
The present paper has adopted a systemic approach to analyse the foresight activities in the Indian biotechnology sector. An online Delphi survey, including interviews, was conducted for 750 biotech units.
Findings
The greatest need of foresight is felt in the biopharma sector, especially in the small- and medium-sized firms. The methodologies used are only pre-foresight in nature and for short-term time horizons. The output preferred is “setting the R&D planning and priorities”. “Assessing socioeconomic and environment impact” is not accorded a high priority. Most of the regulatory agencies do not carry out foresight exercises.
Originality/value
The research holds significance for evolving sustainable development policy.
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