The Pipeline Challenge: How to Organize Innovation

Abstract

More than in most other industries, the success of pharma R&D hinges on efficient and intelligent pipeline management. All activities and tasks in the research and development phases are highly regulated and defined with precision---a prime example of a stage-gate process. Given the long duration of the development of a new drug, and the increasing R&D costs per drug on average, the industry faces unfavorable innovation economics also known as ``the innovation scissors.'' The nature of the pipeline permits increasingly sophisticated portfolio analysis of drugs in development, offering pharma companies managerial options in managing individual drug candidates based on accessible competencies, risks, and expected benefits.