The open-source model for biopharma R&D yields better results when it comes to late-stage success, according to a new report released by Deloitte at this week’s BIO convention in Philadelphia. Collaboration, even with competitors, helps usher a drug into successful development.
Drugs sourced with open innovation are three times more likely to be successful, the report says.
“Research and development is one of those endeavors that benefits from a diverse mix of opinions, ideas and experiences,” said Ralph Marcello, a principal at Deloitte Consulting. “I think life sciences organizations are primed to make significant moves in this direction, and that could produce a new level of benefit for patients and the health system as a whole.”
When Investment Rhymes with Canada
Canada has a proud history of achievement in the areas of science and technology, and the field of biomanufacturing and life sciences is no exception.
The report analyzed 281 biopharma companies from 1988 to 2012, learning that drugs sourced with open innovation had a higher chance of success at a later stage. That is, of 355 products developed with an open innovation model, 119 were filed – 34 percent. But of the 463 products created with a closed innovation model, only 51 were filed – or 11 percent.
However, companies source about 80 percent of their R&D pipeline from companies enmeshed in the closed model of product development. And open innovation adoption’s still infrequent and slow, because companies are still concerned about IP rights – as well as adapting to a new R&D model, as well as cultural and management issues.
Photo: Flickr user Tim Appnel
