The Make-or-Buy Challenge: How to In- and Outsource Innovation

Abstract

The formerly fully integrated pharma value chain is disaggregating given the emergence of highly capable and specialized research and clinical development service providers. The options range from outsourcing, out-licensing, and in-licensing, strategic partnerships and co-development. These concepts are discussed in detail and illustrated with cases from industry. We conclude with an example of how a breakthrough innovation can best be commercialized by a small pharma company using those make-or-buy options.