Competitive and technological changes in the pharmaceutical industry-from powerful new drug chemistries to innovative R&D partnerships and marketing plans-are reshaping the business strategies of many pharmaceutical and biotechnology companies.
According to new research from the MIT Program on the Pharmaceutical Industry (POPI), many companies today are searching for ways to increase productivity, decrease costs, and develop new treatment modalities that will enhance profitability.
What strategies seem to be working best for successful pharmaceutical and biotech companies when it comes to the productivity of drug discovery and the time it takes to develop new drugs; investment in R&D projects; manufacturing processes; and OTC switching? What benchmarks can you use to compare your company practices in drug discovery, clinical trials, and manufacturing metrics to those of the most successful companies?
These are among the issues we will explore in "The Future of the Pharmaceutical Industry," a one-and-a-half day briefing for senior corporate and technical executives on growth, change and opportunity in the pharmaceutical/biotechnology industry, to be held December 4-5, 1997, in Cambridge, Massachusetts.
Led by a distinguished MIT faculty of scientists, engineers, economists, and management professionals, as well as noted industry experts, the program will present new findings on the current state of the industry, as well as examine:
- the future of R&D
- best practice benchmarks in drug discovery, development and manufacturing
- emerging pharmacoeconomic marketing strategies.
Please accept my personal invitation to participate. In addition to exploring strategic issues in pharmaceutical and biotechnology R&D, manufacturing, drug development, costs of capital, and the economics of new pharmaceutical marketplaces, we will also look at the prospects for changes in regulatory policy and competition.
I urge you to review the following prospectus, then to contact Alison Dibner, program coordinator, at (781) 239-1111 to reserve your place at the program. We look forward to seeing you in Cambridge in December.
Sincerely,
Stan N. Finkelstein, M.D.
Co-Director, Program on the Pharmaceutical Industry
The Massachusetts Institute of Technology
Announces A Special One-and-a-Half Day Program
for Senior Corporate Management
The Future of
The Pharmaceutical
Industry
A Comprehensive Executive Briefing
on Growth, Change and Opportunity
in the Years Ahead
Featuring Important New MIT Research on:
The Future of R&D
· Drug Discovery & Development Science
· Clinical Drug Development
· Managing R&D Professionals
Benchmarking: Common Practice/Best Practice
· Drug Discovery
· Critical Decisions in Drug Development
· Pharmaceutical Manufacturing
Emerging Developments in Pharmacoeconomics
· Disease Management Strategies in the Workplace
· OTC Switching
In Cambridge, Massachusetts
December 4-5, 1997
On the State of the Industry
"How do firms decide which drugs to develop?"
"How do firms find the right point for balancing resources ...between
'unmet
medical need' and 'market well served'?"
"How are firms addressing the rising cost of drug development?"
-The MIT Program on the Pharmaceutical Industry Annual Report
In 1991 an ambitious project was undertaken at MIT to create an interactive research center to explore the factors that drive, constrain, and enhance the performance and competitiveness of the pharmaceutical/biotechnology industry. By assembling a high-quality, multi-disciplinary MIT faculty representing chemistry, life sciences, engineering, economics, and management sciences, the MIT Program on the Pharmaceutical Industry (POPI) was able to initiate some 20 successful research projects that examine crucial strategic areas facing drug and biotechnology companies today, including:
This conference on The Future of the Pharmaceutical Industry is being convened to share the results of this ongoing research.
We believe these findings are critical for senior management as they strive to understand:
Who Should Attend
This program has been designed for senior executives in organizations
affiliated with the pharmaceutical/biotechnology industry, including Chief
Executive Officers; Presidents; Board Chairmen and Board Members; Executive
Vice Presidents; Vice Presidents of Sales and Marketing, Manufacturing,
Research and Development, Technology, Finance, and Operations; Corporate
Counsel; Strategic Planners, and other executives involved with scientific,
technical or management issues critical to the long-term health of the industry.
At This Program You Will learn ...
...about findings drawn from among the 20 major MIT research projects focused on key segments of the pharmaceutical and biotechnology industry which identify:
- The emerging economic power of companies specializing in combinatorial chemistry and high throughput screening, and how those technologies are being used to develop new chemistries for drugs.
- How the rate of scientific advance in biochemistry, drug screening and drug delivery are influencing the composition, productivity and organization of pharmaceutical R&D.
- The potential impact of new technologies on reducing the time and cost of the clinical drug development process.
- Optimal strategies for managing and motivating scientists and clinicians and for creating a more highly motivating work environment.
- Innovative approaches to financing pharmaceutical R&D.
- Important characteristics of firms that are among the leaders in drug discovery efforts.
- The strategic implications of project management decision-making practices during clinical drug development -- including which decisions most affect project performance, and who should be making them.
- Ways, through process innovation, to move drugs more quickly through clinical trials.
- Possible approaches for reducing by as much as 50 percent the number of experiments required to determine a new drug's optimal manufacturing practices -- and the implications for substantial cost savings.
- Why you may be making a fatal mistake if you fail to improve on manufacturing process during the period of patent protection.
- The evolution of pharmaceutical marketing strategies which tie new product efficacy to its favorable impact on workplace performance.
- How a firm's order of entry and promotion strategy for a new Rx and OTC products affect its success in the rapidly changing drug marketplace.
- Future directions in the pharmaceutical/biotech industry, particularly in areas related to global productivity, profitability and competitiveness.
The Program
I. The State of the Industry
1. Emerging Pharmaceutical and Biotechnology Industry Trends
A concise overview of current MIT research into new directions in R&D, drug development, manufacturing, pharmaceutical innovation, and marketing and economic strategies, as well as findings which pinpoint emerging trends in productivity, benchmarking, quality, innovation and the marketplace that are redefining the global pharmaceutical industry.
II. The Future of R&D
2. The Future of Drug Discovery and Development Science
How biology and chemistry are changing as a result of high-powered computers, chemical information software tools and new database-searching algorithms. Technological advances in high-throughput screening hardware, combinatorial chemistry and information technology, in combination with high-value targets in the pharmaceutical industry, have created a cost- and time-efficient technology platform to screen a large number of compounds. Why small research groups in biotechnology companies and academia are as likely to establish priority and monopoly positions as large pharmaceutical companies. Plus important insights into current and future changes in drug discovery and development occasioned by successes in sequencing the human genome.
3. The Future of Clinical Drug Development
With pressures in many markets to keep prices low, drug firms are struggling to be more efficient in their spending on drug development and with respect to the time to market. In this presentation you'll learn about the results of research into how new technologies such as medical imaging (to see how drugs under development actually affect the human body, possibly reducing the requirement for more extensive Phase III trials) may enable information to be obtained earlier in the clinical development process so as to substantially reduce time and cost. What the implications are for developing therapeutics to address unmet medical needs.
4. Managing R&D Professionals
What our research shows about optimal strategies for managing and motivating scientists, clinicians, and creative individual R&D contributors; creating a highly motivating work environment; and:
· the human side of high-performing creative teams
· how to overcome the unique problems associated with managing the performance and productivity of individual technical professionals
· how to get the organization to work more productively under stress.
5. The Future of Financing R&D
Some biotechnology companies have been successful in their attempts to use creative instruments as a means of conducting or funding R&D activities, including:
· novel academic-industry relationships, or
· R&D limited partnerships.
In this presentation we will examine the advantages and drawbacks of using these and other approaches, as well as look ahead to future R&D funding scenarios and creating options for mitigating R&D risk.
III. Benchmarking: Best Practice vs. Common Practice
6. In the Drug Discovery Process
Determinants of research productivity in pharmaceutical drug discovery, drawn from five years of research among pharmaceutical companies in the United States and Europe on how well pharmaceutical firms innovate. Based on data from the program level, the findings detail:
· What went right at successful pharmaceutical firms; how the most successful companies have been able to respond so well to challenges posed by the evolution in biomedical sciences.
· The lessons you can learn from their success.
7. In the Clinical Trials Process
Results of research into clinical decision making during drug development and how various decision- making strategies can influence time and cost. In order to optimize the performance and effectiveness of the pharmaceutical R&D project management team:
· Who in the organization should be making very early clinical decisions such as the choice of therapeutic indications, dosages and delivery;
· Who should be making clinical decisions later in the development process;
· Where should budget control lie?
How can you justify the value of adding more highly educated and capable
scientists and physicians into the clinical trials project management process?
8. In the Manufacturing Process
New findings on manufacturing metrics (e.g., inventory, speed of production) and on manufacturing practices derived from a POPI study of 15 companies aimed at benchmarking best practices in pharmaceutical manufacturing. What our research shows about the evolving strategic importance of manufacturing to capturing competitive advantage and about existing and potential opportunities for cost savings. You will learn about benchmarks you can use to compare your own manufacturing practices with those of competitive companies.
The research also explores ways to use process innovation to move drugs more quickly through clinical trials and, ultimately, to speed up time to market by reducing the number of experiments required to determine the optimal manufacturing process. What others are already doing to realize significant savings.
IV. Emerging Developments in Pharmacoeconomics
9. Disease Management Strategies in the Workplace
How medical treatment with pharmaceuticals affects performance and productivity at work, and the implications for linking marketing strategies to disease management in the workplace. What MIT researchers uncovered in a study to determine whether the workplace benefits associated with treating illness with drugs affect the ability of a firm to sell its products, in both new and existing therapeutic markets. What are the implications for the ways pharmaceutical and biotechnology companies now market and sell therapeutics? Strategies for interesting more employers in participating in such interventions as screening for high blood pressure, cholesterol, depression and gastric acid reflux.
10. OTC Switching
The implications of dramatic changes in the prescription and OTC markets for anti-ulcer drugs. What explains the continued growth in the overall market? For prescription drug manufacturers, when is it a viable strategy to think about switching to over-the-counter? What are the characteristics of products which could/should be switched? What are other factors you should consider before switching, including, distinguishing product characteristics, pricing issues in Rx and OTC versions of the same chemical entity, and cannibalization of your own Rx market?
11. The Future of the Pharmaceutical Industry
A panel of distinguished experts explores key changes that lie ahead for pharmaceutical and biotechnology companies in R&D, drug development, new technology, profitability and the regulatory arena as they prepare for the competitive environment of the 21st century.
Program Faculty
Thomas J. Allen, Deputy Dean and Howard W. Johnson Professor of Management, Sloan School of Management, and Co-Director, Program on the Pharmaceutical Industry, Massachusetts Institute of Technology
Ernst R. Berndt, Louis B. Seley Professor of Applied Economics, Sloan School of Management, Massachusetts Institute of Technology
Charles L. Cooney, Professor, Chemical and Biochemical Engineering; Executive Officer, Department of Chemical Engineering; and Co-Director, Program on the Pharmaceutical Industry, Massachusetts Institute of Technology
Stan N. Finkelstein, M.D., Co-Director, Program on the Pharmaceutical Industry and Senior Research Scientist, Sloan School of Management, Massachusetts Institute of Technology
Rebecca M. Henderson, Associate Professor, Strategic Management Group, Sloan School of Management, Massachusetts Institute of Technology
Ralph Katz, Principal Research Associate, Sloan School of Management, Massachusetts Institute of Technology
Stewart C. Myers, Gordon Y. Billard Professor of Finance, Sloan School of Management, Massachusetts Institute of Technology
Carl Peck, M.D., Professor of Medicine, Georgetown University, and Director, Center for Drug Development Science
Robert H. Rubin, M.D., Osborne Chair, Health Sciences and Technology and Director, Center for Experimental Pharmacology and Therapeutics, Massachusetts Institute of Technology; and Chief, Infectious Disease for Transplantation, Massachusetts General Hospital
Anthony J. Sinskey, Professor of Microbiology, Department of Biology and Associate Director, Biotechnology Processing Engineering Center, Massachusetts Institute of Technology
About the MIT Program on the Pharmaceutical Industry
The MIT Program on the Pharmaceutical Industry (POPI) is a unique university-industry-government partnership based at MIT's Sloan School of Management. It was founded in 1991 to both perform multidisciplinary research into the factors that drive, constrain and enhance the performance and competitiveness of the pharmaceutical/biotechnology industry, and to educate future scientific and management leaders for the industry and for those organizations that supply it, regulate it or use its products. Among its research and educational accomplishments, which involve more than 30 faculty from throughout the MIT community, POPI continues to track ongoing work in areas including drug development, pharmaceutical manufacturing, and the pharmaceutical marketplace.
To Register
Please complete and return this form to Alison Dibner, Center for Management Research (conference administration office), 55 William Street, Wellesley, MA 02181, or call Ms. Dibner at (781) 239-1111. You may also fax this page to (781) 239-1546 (area code changed from '617' on 9/1/97). Confirmation of receipt will be made by mail.
The registration fee is $1250. It includes luncheons, reception, and complete program materials. It does not include hotel accommodations.
Accommodations: We have reserved a block of rooms at a hotel convenient to the program site. Information on how you may arrange for accommodations will be sent to you approximately 8 weeks prior to the session.
Certificates: Certificates of Participation will be awarded to all those attending the Program.
Attendance Limitations: Attendance will be reserved on a first-come, first-served basis.
If a session is canceled, MIT's liability is limited to the registration
fee.
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Return this form to Ms. Alison Dibner, Center for Management Research, 55
William Street, Wellesley MA 02181, or call (781) 239-1111; FAX: (781)-239-1546
[ ] Please register me for the December 4-5, 1997, MIT executive briefing on The Future of the Pharmaceutical Industry
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