Tipping points -- the future of the pharmaceutical industry
2011-02-05
(Press-News.org) This declining trend is blamed on a failure of innovative drive in the industry, failure of the UK to support basic research, failure of venture capital to invest in early stage research, or failure of the Health Service to provide smart procurement.
A research centre funded by the Economic and Social Research Council (ESRC) shows that radical reform of the drugs industry regulatory system must be an important part of the solution to ensure a productive and profitable pharmaceutical sector, both globally and in the UK.
Researchers from the ESRC's Innogen centre have studied the innovation models in the pharmaceutical industry and how the industry has been able to remain sustainable for so long. The results of their research show that the lengthy and expensive regulatory system that now applies to most products of the life sciences is causing innovation failure.
Regulation has a large impact on the kinds of product that are developed by any industry sector: it is designed to ensure that products are safe, effective and of high quality. Innogen's research demonstrates that the impacts of regulation in pharmaceuticals are more far-reaching: they determine overall company strategies; which types of companies succeed; and ultimately the structure and dynamism of the sector as a whole. Under current circumstances regulation prevents the development of the radically innovative technologies that could provide opportunities for the sector to become more effective in developing innovative products. Innogen research has predicted that the industry is approaching a tipping point in the not too distant future.
Professor Joyce Tait comments "We do not need less regulation, but smarter regulation, that can deliver expected standards of safety and efficacy, are flexible enough to respond to new scientific discoveries and can do so more efficiently than our current systems within a shorter time frame."
Innogen research also shows that policymakers and governments need an understanding of all the major causes and relevant options available. Radical regulatory reform for the life science industries needs to be a priority in discussions regarding the future of the industry. Reform could provide the lever to profitably unleash the creativity that has been so effectively generated from public funding of basic science, leading to something closer to the innovative performance that we have seen in information and communication technologies over the past twenty years.
INFORMATION:
FOR FURTHER INFORMATION, CONTACT
Professor Joyce Tait (Tel: 0131 650 9174, email: Joyce.Tait@ed.ac.uk)
ESRC Press Office:
Danielle Moore (Tel: 01793 413122, email: danielle.moore@esrc.ac.uk )
Jeanine Woolley (Tel: 01793 413119, email: jeanine.woolley@esrc.ac.uk )
NOTES FOR EDITORS
1. Professor Tait in involved with a number of projects at the Innogen Centre.
2. The Economic and Social Research Council (ESRC) Innogen Centre is part of the ESRC Genomics Network studying the new life sciences and their far-reaching social, ethical and economic implications. Innogen's research provides a sound base for decision-making in science, industry, policy and public arenas.
http://www.genomicsnetwork.ac.uk/innogen/
3. The Economic and Social Research Council (ESRC) is the UK's largest organisation for funding research on economic and social issues. It supports independent, high quality research which has an impact on business, the public sector and the third sector. The ESRC's total budget for 2010/11 is £218 million. At any one time the ESRC supports over 4,000 researchers and postgraduate students in academic institutions and independent research institutes. More at www.esrc.ac.uk
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