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Open Source Pharma: What is the problem with drug R&D

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Presentation given by Bernard Munos at the Open Source Pharma Conference at Rockefeller Foundation Bellagio Center, July 2014.

Bernard Munos Bio:

Conference Agenda (see Day 1, Session 1):

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Open Source Pharma: What is the problem with drug R&D

  1. 1. What’s the Problem with Drug R&D? Bellagio, Italy, July 15-18, 2014 #opensourcepharma
  2. 2. What is the problem? • Too little innovation • Too much mediocre innovation • Unaffordable innovation • Rests on non-predictive science  Erratic  Driven by black swans  High-risk  High prices  No Moore’s Law… only Eroom’s Law! InnoThink
  3. 3. Driven by unattractive “attractors” High risk High return High R&D investment Industry concentration Industry fragmentation Low risk Low return Low R&D investment InnoThink
  4. 4. What else? • Inadequate leadership for much of past decade  Changing in companies with leaders willing and able to deal with the challenge (e.g., jnj, gsk, sny, nvs, roche, bmy, bay, azn) • Underperforming research model • ½ Big Pharma = High-priced generic industry • Ambivalent about change • Change difficult… outcomes uncertain… but those that do not reform, will be outperformed InnoThink
  5. 5. Alternatives: How can we outperform the status quo? InnoThink • Open-source drug R&D (e.g., OSDD, OSM) • Crowdsourcing (e.g., Innocentive) • Drug repurposing (e.g., NIH, disease foundations, “biotechs”) • Public-private partnerships (e.g., DNDi, MMV) • Networked innovation (e.g, ANDI/WHO; J&J) • Virtual companies (many “biotechs”; GSK) • Forced disruption (DARPA) • Precompetitive collaboration (Consortia-Pedia) • Biological modeling (Sage, Dassault)
  6. 6. More thoughts… InnoThink • Let’s increase the supply of drugs… not manage the scarcity • We are on the cusp of a hyper-innovation age… but it will involve mostly different players • Some industries cannot be reformed… they can only be disrupted… and disruption always comes from the outside • Innovation should be plentiful… much of the information is free… tools are widely available… craft is non longer proprietary • Crowdfunding and microfinancing will meet a growing share of drug discovery financing needs • IP is only a problem because there is too little of it that’s any good… scarcity drives up value
  7. 7. Last thoughts… • We are witnessing 3 transformations at once  The transformation of biology  The transformation of research tools and methods  The transformation of medicine • All three are driven by data… that spells change • The expertise in data analysis does not reside in pharma • Smart phones changed the world in < 7 years… We can change pharma yet in this decade InnoThink
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