BUS COM 9551 White Paper

Topics: Pharmacology, Pharmaceutical industry, Drug development Pages: 7 (1484 words) Published: February 10, 2015

Pfizer Collaboration:
The Key to Sustaining
Research & Development

Pfizer Collaboration:
The Key to Sustaining
Research & Development

The high costs of producing safe and effective drugs should drive managers in the pharmaceutical industries to think of innovative ways to reduce costs. In order to sustain research and development (R&D), every employee should be encouraged to work towards boundary-less collaboration. Research and Development collaboration is important in producing better innovations, streamlining processes, reducing expenditures, and building working relationships. This type of collaboration culture, if encouraged within the workplace of Big Pharma companies can help to sustain such a fickle business in the face of mergers, outsourcing, global economic recession and the even more stringent conditions of the drug approval process. The Cost of Drug Development

The average cost to research and develop each successful drug is estimated to be $800 million to $1 billion.1 This number includes the cost of the thousands of failures: For every 5,000-10,000 compounds that enter the research and development (R&D) pipeline, ultimately only one receives approval.1 _____________________________________________________________________________________________________ 1. http://www.phrma.org/sites/default/files/159/rd_brochure_022307.pdf (accessed 05April2012)

The pharmaceutical industry in the United States of America (USA) is a billion dollar industry. However, unlike other billion dollar industries, the pharmaceutical industry markets products such as life saving drugs. Therefore, it is no wonder that within this industry, it takes great detail and an immense amount of time to deliver safe and effective drugs. This great attention to detail and input of time ultimately translates to a huge undertaking of resources and use of money. It can take up to fifteen years to develop one new medicine from the earliest stages of discovery to the time it is available for treating patients.1 The Drug Development Process 2

1. http://www.phrma.org/sites/default/files/159/rd_brochure_022307.pdf (Accessed 05April2012)

2. http://amethystls.com/biotechpro.shtml (accessed 14Apr2012)

The pharmaceutical industry is in a big crisis, as the ratio of successful and profitable drugs produced compared to the dollars invested to produce one drug is unbalanced. This can lead to an unprofitable business, which in due time will collapse. Many regulatory bodies such as the Food and Drug Administration (FDA) have also raised their standards of approval, making it a harder and longer process for a drug to be approved, meaning more time and more money needs to be invested. Also the expiration of patents for drugs that are on the market makes a huge impact on profitability for many drug companies.

The Importance of Research and Development (R&D)
● Research and Development Produces Well Needed Drugs
Although the process of drug development is extremely costly, the benefits far outweigh its cost. As Martha Brumfield (Ph.D., Pfizer, Inc.) puts it “I find it very exciting to be involved with the drug in its final stages... after so many years of waiting. The patients are finally getting access to the drug that potentially is going to help them.” 1 Since there is never a shortage of diseases or disease causing organisms, there will always be the dire need for R&D to produce drugs that combat these diseases. A myriad of patients are depending on new and improved drugs that offer them hope (sometimes their only hope) and a better quality of life. These patients include you, me, family, friends, and people in general.

1. http://www.phrma.org/sites/default/files/159/rd_brochure_022307.pdf (Accessed 05April2012)
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The implication of cutting back on vital R & D...
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