A Revolution in R&D
A Revolution in R&D
A Revolution in R&D
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Foreword<br />
To meet growth targets, pharmaceutical companies are go<strong>in</strong>g to have to <strong>in</strong>crease R&D productivity. By a fortunate<br />
co<strong>in</strong>cidence, that crisis <strong>in</strong> expectation is be<strong>in</strong>g counterbalanced by a surge of opportunity. Recent<br />
years have seen astonish<strong>in</strong>g advances <strong>in</strong> technology and explosions of data, which are driv<strong>in</strong>g two waves of<br />
change through the <strong>in</strong>dustry—a genomics wave and a genetics wave—and radically reshap<strong>in</strong>g R&D methods<br />
and economics <strong>in</strong> the process. Biopharmaceutical R&D is mov<strong>in</strong>g <strong>in</strong>to a new era: almost every l<strong>in</strong>k <strong>in</strong> the<br />
value cha<strong>in</strong> has the potential for tremendous boosts <strong>in</strong> efficiency or success.<br />
But these advances are not assured. Technological hurdles have yet to be overcome, particularly <strong>in</strong> the genetics<br />
wave. Moreover, because the productivity boosts are likely to be unequal and uncoord<strong>in</strong>ated, the value<br />
cha<strong>in</strong> itself will demand reconfigur<strong>in</strong>g. And so too, <strong>in</strong> consequence, will many traditional operational procedures<br />
and organizational structures. The repercussions of genomics, <strong>in</strong> other words, are go<strong>in</strong>g to reach the<br />
furthest recesses of corporate constitution and culture. A true revolution, <strong>in</strong> short—and one that is already<br />
well under way.<br />
BCG has evaluated deeply the economic and bus<strong>in</strong>ess implications of these disruptions. To bolster our <strong>in</strong>ternal<br />
understand<strong>in</strong>g, we gathered <strong>in</strong>formation and perspectives <strong>in</strong> an extensive program of <strong>in</strong>terviews with<br />
lead<strong>in</strong>g R&D scientists and executives. Our f<strong>in</strong>d<strong>in</strong>gs—based on the comb<strong>in</strong>ation of these <strong>in</strong>terviews, economic<br />
model<strong>in</strong>g, and client casework—form the substance of this report. Its three sections are devoted<br />
respectively to the impact of genomics, the impact of genetics, and some of the strategic and operational<br />
implications for biopharmaceutical firms.<br />
The first two sections have already been published separately. They generated considerable publicity, and—<br />
more important—considerable comment. We now look forward to your further responses to the report as a<br />
whole.<br />
Philippe Guy<br />
Senior Vice President<br />
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