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Question in: Innovation in Biopharmaceuticals

Diminishing R&D funding & logical way ahead.


What will be the correct steps necessary to trim the overspending and underperforming R&D's of pharmaceutical companies? Is slashing of funds for R&D to cut overheads and instead focus on M&A for boosting their pipeline the right way ahead or a combination of collaboration with academics along with employing AI driven screening technology for drugs (casestudy - BERG) could emerge as the future in this field?

Pharmaceutical Industry
Krishnendu Chatterjee Ph.D.
6 months ago

3 answers


Does BERG explain what AI driven screening technology for (I assume small molecule) drugs is? Sorry not familiar.
"Slashing" R & D budgets means you don't have discovery scientists to recognize or the laboratories for them to properly evaluate M&A opportunities and don't have clinical and regulatory staff that can get the drug through development efficiently. Academic scientists are typically not disciplined enough to provide reproducible results in a reasonable time frame. The scenario then becomes one of hiring people to select and monitor the contractors. That is certainly an alternate business model but has its own set of problems.
Being able to identify programs and processes that are failing earlier is another concept for improving pipeline success that is oft discussed.
Don't think anyone has the answer and you can believe that many have tried.

Meg Baker
6 months ago
The problem associated with slashing R&D budget could truly create loopholes in properly evaluating M&A opportunities. But I disagree that academic scientists are not disciplined enough to reproduce results. Early collaboration and a steady stream of funding could ensure continuity and thus ensure reproducible work. The funding issues create a lot of hassles which forces academics to publish paper - Krishnendu 6 months ago

I don't mean that the scientists themselves are not disciplined. It is the whole context: the record keeping and reporting methodology that is usually lacking. After all, they are students not a contract organization. Expectations have to be managed accordingly.

Meg Baker
6 months ago

Pharmaceutical companies should be given adequate budget to handle long term and short term projects. Outsourcing with CROs wont be a right decision because it will help get restricted data and is not in depth. Collbaoration with academics is always an option however, the main driver should be the R&D of pharmaceutical companies itself. In the long run, this approach will bring dividends to the company.

Sandeep Varma
6 months ago

Have some input?