Tuesday, March 8, 2011

New Big Pharma Opportunities for Academic Research

It may be hard to believe, but many big pharma companies may be facing a tough time in the near future. Within the next five years, patents for a number of lucrative drugs will expire, and it is estimated that these drugs currently contribute approximately $140 billion per year in revenue. When a patent expires it becomes available for competitors to exploit commercially. This poses a big problem, as it is always hard to predict when the next blockbuster will arrive to make up for lost revenue.

Pharmaceutical companies do have strategies to soften the impact of patent expiration. Examples include increasing the use of a drug through extension to other uses, the introduction of a novel improvement, or the creation of a generic version. However, these strategies may not be sufficient to adequately differentiate themselves from their competitors. That is why the industry is working on a new way to revitalise their portfolio: the combination of IT and health care.

Mobile phone applications (apps) are currently a hot topic in the industry. According to an Ernst & Young report, pharmaceutical companies started 97 projects in 2010. The majority of projects are focused on smartphone apps and examples include software for blood sugar level monitoring, the provision of clinical trials results and vaccination data management. The combination of easy access to information and treatment increases the efficiency of drug development and drug usage. At a time when regulatory bodies require ever more complex trials and a huge amount of data, the provision of adequate and relevant patient information helps in the design of more cost-effective clinical trials. Mobile apps may also improve the way patients, drug developers and medical practitioners communicate. This will allow for customised treatment and the development of new strategies for drug prescription and patient monitoring.

Although universities play an important role as an innovation supplier for the pharmaceutical industry, the research and development of a compound or biological agent is very resource intensive. The expansion of drug companies into the IT sector provides universities with the opportunity to leverage their intellectual capital and address a fast growing market without needing to invest in product development programs costing millions of dollars.

Through increased collaboration, UWS's growing capability at the School of Biomedical and Health Sciences, School of Medicine and School of Computing and Mathematics places the university in a great position to capitalise on these emerging trends.

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