DECEMBER - JANUARYLIFE SCIENCES REVIEW9The pharma industry has shown its ability to adapt to changes in regulation, financial challenges, payers requirements, intellectual protection reductionnumerous options for each of those category, numerous potential partners and variable expertise required depending on therapeutic area, modality, expertise, research or development phase. With this, one needs to optimise the panel of external contributors/partners/co-developers/providers for each compound and adapt while progressing in development. Due diligences that were episodic in previous periods become systematic. Functions such as business development, legal, purchasing, and alliance management become central and agility as well as speed are of the essence. Likewise, management requires different skills. Key competencies need to move from internal expertise building to acquisition, mastering due diligence becomes specific know-how that makes the difference, and priorities need to shift from internal property protection to flow efficiency and common benefit. Even at the centre (or top) of the organisation, adaptations to efficient open innovation are required. Fast, easy-to-access decision-making governance, adapted financing flow, completely different external/internal cost ratios, and different risk management are key enablers of the model.One remaining question is around the management of the drastic changes required so that it does not destroy value but eventually works and is productive. One can expect inertia, passive or even active resistance as the move will require giving up some well-established knowledge, structures, and processes. Some well-defined objectives and KPIs were enablers but will become showstoppers. Defining the innovation strategy precisely, including the core expertise to be retained, is a must, as well as adhesion from the leadership. To avoid value destruction on existing programs, progressive changes on a steady slope rather than revolution is recommended, starting with a narrow field of strategic importance closely linked to data science supported by a protected neutral due diligence team and adequate business development and legal resources. This can be the seed where to attach resources progressively, enabling a soft revolution.Overall, what was a medieval castle before becomes an island of strategic core know-how bounded to multiple partners. This is an important change to be made but one that could well be vital to pharma research and development.
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