DISRUPTIVE INNOVATIONS AND GLOBAL NETWORKS Pozas_genomics and...disruptive innovations and global networks: the case of genomics and pharmaceutical industry ... mergers or acquisitions of generic

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  • DISRUPTIVE INNOVATIONS AND GLOBAL NETWORKS: THE CASE OF GENOMICS AND PHARMACEUTICAL INDUSTRY

    MARA A . POZAS CENTER FOR SOCIOLOGICAL STUDIES EL COLEGIO DE MEXICO APRIL 2014

  • The sequencing of the entire human genome - mapping and location of all human genes - achieved in 2001 is considered a radical innovation with potential to change in the coming years the paradigm of medicine and health systems worldwide.

    We hypothesize that genomics, as a disruptive innovation, tends to produce global reorganization of several industries. Its global production networks become the fastest channel for genomics diffusion and dissemination.

    To illustrate this hypothesis, the case of global pharmaceutical industry is analyzed as well as the form in which the new paradigm for drugs production modifies the domestic pharmaceutical industry in Mexico

  • DRUGS PRODUCTION CHANGING PARADIGM

  • MOLECULAR PATHWAY

    NEW METHOD OF

    DRUGS DISCOVERY

  • PATENT EXPIRATION DATES OF MAJOR PRODUCTS FOR R&D-BASED PHARMACEUTICAL TRANSNATIONAL CORPORATIONS

    Patent owner Drug name Indicated use Patent expiry

    Abbott Kaletra HIV/AIDS 2016

    Norvir HIV/AIDS 2014

    Astellas Prograf Transplant rejection 2008

    Protopic Dermatitis 2014

    VEScare Overactive bladder 2015

    Astra Zeneca Crestor Cholesterol 2016

    Seroquel Schizophrenia 2012

    Boehringer Ingelheim Flomax Prostatic hypertrophy 2009

    Bristol-Myers Squibb Efavirenz HIV/AIDS 2012

    Daiichi Sankyo Cravit Infectious disease 2010

    Mevalotin Cholesterol 2006

    Olmetec High blood pressure 2016

    Eisai Aricept Alzheimers 2010

    AcipHex Gastroesophageal reflux 2013

    Eli Lilly Zyprexa Schizophrenia 2011

    Glaxo Smith Kline Epivir HIV/AIDS 2014

    Relenza Influenza 2014

    Seretide/Advair Asthma 2010

    Hycamtin Cancer 2010

    Johnson & Johnson Cozaar High blood pressure 2010

    Merck Diovan High blood pressure 2010

    Singulair Asthma 2012

    Novartis Zometa Cancer 2013

    Pfizer Lipitor Cholesterol 2011

    Viagra Erectile dysfunction 2012

    Xalatan Glaucoma 2011

    Sanofi-Aventis/Bristol-Myers Squibb Plavix Anticoagulant/heart disease 2012

    Sanofi-Aventis Taxotere Breast cancer 2013

    Takeda Actos Diabetes 2011

    Blopress High blood pressure 2012

    Leuprorelin Prostate cancer 2014

    Prevacid Ulcer 2009

    Source: United Nations Conference on Trade and Development (UNCTAD), Investment in Pharmaceutical Production in the Least Developed Countries (UNCTAD/DIAE/PCB/2011/5), Geneva, United Nations, 2011.

    [1] Note: Trademark registrations compiled by UNCTAD from United States Patent and Trademark Office, Trademark Electronic Search System; patent expiry dates compiled by UNCTAD from various sources, including investors reports and Internet searches (2011).

  • NEW GLOBAL STRATEGY

    MERGERS BETWEEN LARGE PHARMACEUTICAL COMPANIES TO BALANCE

    LOSSES DIVERSIFING THERAPEUTIC CATEGORIES AND EXPANDING THE

    MARKET

    MERGERS OR ACQUISITIONS OF GENERIC PHARMA COMPANIES IN EMERGING

    COUNTIRES TO KEEP MARKET SHARE IN EXPIRED PATENT DRUGS

    NEW RESEARCH MODELS IN ORDER TO ADAPT DRUGS TO SPECIFIC NEEDS IN

    DEVELOPING COUNTRIES

    SALE AS COMBOS, COMBINATIONS OF DRUGS ALREADY IN THE IN ORDER TO

    KEEP THE RATE OF NEW PRODUCTS

  • PHARMACEUTICAL M&A DEALS

    Date Company M&A target

    1995 Glaxo B.Wellcome

    1999 Astra Zeneca

    2000 Pfizer Warner-Lambert

    2004 Sanofi Aventis

    2006 Bayer Schering-Plough

    2006 Merck & Co. Serono

    2007 Astra Zeneca MedImmune

    2008 Novartis Alcon

    2008 Teva (generics) Barr Pharma

    2008 Roche Genetech

    2009 Pfizer Whyeth

    2009 Merck & Co. Schering-Plough

    2009 Sanofi-Aventis Zentiva (generics)

    2009 GlaxoSmithKline Stiefel Laboratories

    2009 Sanofi-Aventis Merial (animal health)

    2009 Abbott Laboratories/Solvy (pharmaceutical division) Solvy (pharmaceutical division)

    2010 Merck-German Millipore

    2010 Teva Ratiopharm

    2010 Astellas Pharma OSI Pharmaceutical

    2011 Sanofi Genzyme

    2011 Bristol-Myers-Squibb Amira Pharma

    2011 Johnson y Johnson Synthes

    2012 Bristol-Myers-Squibb/Astra Zenca Amylin Pharma

    2012 Glaxo Smith Kline Human Genome Sciences

    2012 Bristol-Myers-Squibb Inhibitex

    2012 Novartis Fouguera Pharma

    2012 Astra Zeneca Ardea Biosciences

    2013 Astra Zeneca Omthera

    Source: Compiled by the author from various sources, including companies websites and Internet searches (2012).

  • In 2003 less than 100 trials per year were performed (AMIIF 2009).

    In 2005 the figure had risen to 2,025 research, grouped into 425 protocols and 22 therapeutic areas (AMIIF 2009).

    Investing in this type of study grew at a rate close to 15% annually (AMIIF 2009)

    In these research projects were involved over two thousand researchers coming from research institutions in the whole country, 80% of which are public institutions (AMIIF 2009)

    In 2011 the marketing of the 186 companies in the sector established in the country, of which 47 are subsidiaries of large multinationals, increased by 6.4 percent compared to 2010. (CANIFARMA, 2012).

    On average industry sales grew 12% in the last five years (2007-2012). (CANIFARMA, 2012).

    Finally, between 1993 and 2002 manufacturing of chemicals and pharmaceutical products in the country increased at a real rate of 4.85 % annually (Ministry of Health, 2005)

  • Diagram 1: Development process for new drugs and treatments

    I

    Activities performed in public research centers in Mexico

  • ABSORPTIVE CAPACITIES

    A countrys absorptive capacity is measured by the existence of qualified human resources, scientific experience, accumulated technical abilities, infrastructure, and models of cooperation among universities, research centres and health institutions (hospitals and clinics). When combined with an efficient regulatory system, these capacities shape the structure of a host countrys health sector.

  • CHART 4 SCIENTIFIC AND TECHNICAL SERVICES RENDERED BY FOUR MEXICAN PUBLIC RESEARCH CENTERS TO THE

    PHARMACEUTICAL AND FOOD INDUSTRIES, 1999-2012

    Public Sector Research Centers Foreign pharmaceutical and food companies Domestic pharmaceutical companies and health centers GREEN: Services 1999-2004 BLUE: Services 2005-2008 RED: Services 2009-2012

  • EXAMPLE OF SCIENTFIC KNOWLEDGE OUTSOURCED BY PROJECTS NAME Analysis of endometrial genetic expression

    Development of a new method to control cervical-uterine cancer

    Proteomic analysis and techniques of assisted reproduction Proteomic analysis of spermatozoon

    Development of a serological testing system for the early detection of human papillomavirus (HPV) antibodies Evaluation of automated polymerase chain reaction (PCR) tests for the detection of HPV

    Evaluation of penetration effectiveness of pesticides for vector control

    Clinical trial for diabetes mellitus control Home perimeter infection as a determinant of dengue transmission

    Clinical trial phase II to evaluate vaccine immunogenicity and security Evaluation of inhibitory activity of antiseptics and disinfectants in clinical bacterial insulation in hospitals

    Sensitivity to broad-spectrum antibiotics in clinic insulation of entire bacterium responsible for nosocomial infections; sensitivity to broad-spectrum in vitro antibiotics in clinic insulation; effect of supplementation with polyunsaturated fatty acids in neurologic development Identification of individuals with high probability of HCV infections

    Randomized clinical study of a complementary diet programme in adult Mexican women Food intake of urban Mexican population

    Evaluation of fatty acids intake by the Mexican population

    Evaluation of the impact of fortified milk on the nutritional condition of beneficiary children Viability of school programs in the National Strategy against obesity and excess weight

    Evaluation of the efficacy of incrementing milk in the in children with severe malnutrition; effects of vitamin D on the health of pre-school children

    Efficacy of consuming iron-enhanced beans for humans Intake of a diet high in vitamins and minerals in Mexican women