HBS PROFESSOR DIAGNOSES BIOTECH'S SHORTCOMINGS AND OFFERS PRESCRIPTION FOR CHANGE
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| Science Business: The Promise, The Reality and the Future of Biotech Harvard Business School Press |
BOSTON - The contributions of firms like Amgen, Genentech, and Biogen to the biotechnology industry are proof that biotech has the potential to usher in major shifts in the fields of medicine, genetics, food science, pharmaceuticals, and others. Yet, to date, the grand promise of biotech has not been realized – and there is general acknowledgment that the sector is failing to perform up to expectations. Why?
In Science Business: The Promise, The Reality, and The Future of Biotech (Harvard Business School Press), Harvard Business School Professor Gary Pisano argues that debilitating problems in the industry stem from its special character as a science-based business. Identifying three salient characteristics of “drug science” that create unique challenges, he offers a sophisticated analysis of how the industry works and provides clear prescriptions for all industry players – biotech firms, investors, universities, pharmaceutical companies, government regulators – seeking ways to improve the industry’s performance.
In Science Business, Pisano explains how biotech suffers from the following business challenges:
- A fundamental clash of values, norms, and practices between the science and business worlds;
- The difficulty of financing high-risk investments under profound uncertainty and long time horizons for R&D;
- A rapid learning curve, forcing business to keep up with brisk advances in drug science knowledge; and
- The integration of capabilities across a broad spectrum of scientific and technological knowledge bases.
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| Gary Pisano |
To listen to a recent podcast interview with Pisano on this topic, visit HBR Ideacast: http://hbsp2.libsyn.com/
Science Business is a “very insightful analysis of the remarkable evolution of the biotech industry,” said Henri Termeer, chairman, president and CEO, of Genzyme Corporation. “This is required reading for all involved in this process––biotechnology entrepreneurs, venture capitalists, academics, research centers, policymakers, and investors.”
To learn more about Science Business, visit: http://www.hbspress.org.
About the Author
Gary Pisano, the Harry E. Figgie, Jr. Professor of Business Administration at Harvard Business School, currently serves as chair of the Technology and Operations Management Unit. Since joining the Harvard faculty in 1988, he has taught both MBA and executive level courses on technology and operations management, operations strategy, competitive strategy, product development, the management of innovation, and health care. For the past 20 years, Pisano’s research has focused heavily on companies in biotechnology, pharmaceuticals, and health care. His research has led to insights about appropriate licensing, manufacturing, and R&D strategies for biotechnology and pharmaceutical companies.
About Harvard Business School
Founded in 1908 as part of Harvard University, Harvard Business School (www.hbs.edu) is located on a 40-acre campus in Boston. Its faculty of more than 200 offers full-time programs leading to the MBA and doctoral degrees, as well as more than 40 Executive Education programs. For almost a century, HBS faculty have drawn on their research, their experience in working with organizations worldwide, and their passion for teaching to educate leaders who have shaped the practice of business around the globe.