Trends of
Biopharmaceutical industry
and
market opportunity
Open innovation
1
Korea & Global market
Korea’s pharmaceutical market stood at KRW 19.291 trillion (USD 17.3 billion)* in 2013, up 0.3%
YoY(Year over Year), and posted a five-year CAGR(Compound Annual Growth Rate) of 2.3% from 2008 to 2013.
Korea’s pharmaceutical market continues on a steady growth path despite the global economic crisis.
Biopharmaceutical industry overview
2
Growth of
Top 10 national
Pharmaceutical markets
worldwide
Growth rate of 10 countries have generally increasing
rate except some countries in 2012
4 Biopharmaceutical trends
3
1. Increase in therapeutic competition | 2. Greater prevalence of complex medicine |
Is caused by patent cliff | Number of biologics |
| Over 100 biologics have entered the U.S. market over the past decade |
3. Growth of orphan drugs | 4. Emergence of personalized medicine |
Number of orphan drugs | Number of personalized medicine |
The number of orphan drug designations has more than tripled over the past twelve years | The number of personalized drugs has increased significantly in the past years and appears poised to continue to grow In 2014, FDA stated that about 80% of the nearly 50 drugs it has designated as potential “breakthrough” drugs involve targeted therapies2 |
Increased competition from generics
is caused by the patent cliff
Spend decreases due to drugs going off petent
(nearly all small molecule drugs) peaked in 2012 and 2013, but are projected to continue to occur between 2014 and 2017.
Definition, Elements
Market opportunity: Open innovation(OI)
4
Open Innovation: Companies use OI to source external knowledge, ideas, resources, and technologies. OI involves liberally sharing information, capabilities, and IP with other organizations, including competitors.
How it works?
5 elements of OI
Network characteristics | Number of network participants (institutions or individuals) | 20 + participants 5 + countries |
Talent | Relative maturity of capabilities and skills needed (innovative, experimental, and commoditized) | Mixed skill sets with a blend of innovative, experimental and commoditized capabilities |
IP management /contracting | Degree of understanding of IP scope and definition Formality of the agreement | Participants engage without a clear deal; no formal contract initially |
Participant impacts | Influence of network participants on innovation activities | Participants can influence most/all of the innovation activities |
Governance | Review and approval of scientific innovation process (flexible or inflexible,) | Reviews and approvals are elicited only when absolutely necessary |
Examples
Benefits of open innovation
5
GE have their own community for OI, FirstBuild is an online and physical community dedicated to designing, engineering, building, and selling the next generation of major home appliances. GE has also Open innovation manifesto.
For example, We’ll never stop experimenting, collaborating and learning – we’ll get smarter as we go, and the Global Brain will evolve and grow with us.
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To put the principles of Open Innovation into operation, Samsung adopts a multi-pronged approach that involves participation in global consortia, forging links between the industry and top universities, cooperation with vendors, and operation of successful overseas research centers.
The Danish Lego Company has gone the longest way on the path of open innovation. And this is already happening for many years (MindStorms, Lego Ambassador, Lego Factory and lastly the Lego Cuuso…). It’s no surprise then that Lego is often nominated in open innovation studies.
Appendix
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Text and large image