International R&D collaborations in the pharmaceutical industry

Abstract

The purpose of this study is to analyze how the practices of Open Innovation and pre-competitive partnership strategy can be applied both to the reality of Big Pharma and to smaller enterprises, highlighting the differences and advantages of each party. Leaving aside the sector of well established products (WEPs), this thesis focuses on the joint creation between two or more entities of new compounds, or new pharma products (NPPs). One of the key elements in this study is the international factor and how cultural and organizational barriers can affect the participation and stipulation of partnerships with companies from another country. The role of some external agencies such as CROs (Contract research organizations) and the importance of ICE (International Center of Excellence) will be analyzed. During collaborations with companies or universities it is crucial to put emphasis on the technical knowledge protection and the uncertainty of Intellectual Property Rights, listing all the various tools to protect companies in order not to be victims of opportunistic behavior of any untrusted partners. In the first chapter, generic business practices are taken into consideration, without specifically taking into account the pharmaceutical sector. The different models of Open Innovation that are reflected in common strategic practices and the main actors who manage to be successful by adopting an open mentality that encourages listening and sharing, will be analyzed. Partnerships can be stipulated with different entities through different types of agreements and can be grouped into two factions: Market-based partnerships, Science-based partnerships with a third focus on alliances with competitors. Choosing the most suitable partner for a given project is critical for establishing lasting alliances that can lead to successful and profitable collaborative research networks overcoming cultural factors. The second chapter will focus on the reality of big pharma and analyzing specific case studies of alliances: collaboration with start-up, no-profits, universities and Coopetition network. Furthermore, given the particular situation that the world is experiencing today at the dawn of 2020, the main partnerships that are still in action to develop a cure or vaccine for COVID-19 will be described. The third chapter is characterized by the analysis of a specific company (Vitruvio Pharma) to better understand the internal dynamics that can be encountered when moving from a strictly competitive and distrustful closed model to a mentality focused on perpetual innovation, which allows the sharing of ideas, technologies, tools through typical practices of open innovation. The last chapter focuses on the reality of smaller companies, underlining their difficulties and their successes that have led to the creation of long-lasting collaborations through joint-labs, public-private partnerships, and the involvement of micro and small firms. Even if Big Pharma has much higher resources, both in terms of investments, scouting apparatus and the possibility of finding more attractive partners, the modalities of starting an international partnership are similar with smaller companies. The Big Pharma companies have long since incorporated a more open mindset into their organizational structure, encouraging Open Innovation tactics for the creation of new ideas and the exchange of knowledge, through networks, contests, with a precompetitive perspective. Most companies have recently approached the collaborative world in the R&D department, preferring partnerships with universities or research institutes, especially for the early stages of product development. Control over intellectual property is of vital importance through patents and non-disclosure agreements.