Valérie Sabatier

Orchestrating networks in the biopharmaceutical industry: small hub firms can do it

The biopharmaceutical industry has been one of the most dynamic and promising sectors. The entry of Biotechnology start-ups in the 1980s led to the reconfiguration of the drug development value chain and the emergence of new competences. As the sector evolved, specialised firms appeared. As the industry matures, the production process becomes more specialised to support optimisation of technological steps. Our case studies reveal that the coordination of networks can be specialised, with the emergence of Dedicated Coordinating Firms. On the basis of four case studies of European biotechnology companies within a business model approach, this article helps understanding how coordinating a network can be successful and how small hub firms can do it.

what innovative business models can be triggered by precision medicine? Analogical reasoning from the magazine industry

Presently, the health care industry is facing many technological and organizational challenges, and the emergence of precision medicine is bringing innovation and potentially a com- plete redefinition of the industry. This study suggests several paths for incumbent biopharmaceuti - cal companies to follow to address the disruptions brought by precision medicine and renew their business models. Two case studies are examined to analyze two business model-innovation aspects that magazine-industry incumbents share with biopharmaceutical incumbents: a transi- tion toward user-centric business models and a reshaping of the value chain to a value network. We identify the challenges presented by business-model innovation and important processes managers must consider, such as changing logic, acquiring new skills, and establishing new networks. The importance of experimentation and prototyping of different business models is highlighted. Furthermore, we explain that companies must change their positions in the value chain, and by creating new links they can thus transform the value chain into a value network. This paper offers biopharmaceutical industry managers a road map to better adapt to the chal- lenges through innovation of their business models in order to take advantage of the numerous possibilities and opportunities for innovation brought by precision medicine.

Going Virtual in the European Biopharmaceutical Industry: Conductors and Oxpeckers Make It

In the sector of biopharmaceuticals, the dominant business model remains the one of big pharmas: the vertical integration. However we currently observe in the European biotechnology industry the emergence of new business models. This article studies in particular the cases of an orchestra firm and a repurposing firm, both virtual all along the value chain of drugs. It shows that being virtual is possible in the European biopharmaceutical industry. Small virtual firms are able to play the role of hub firms in networks. These organizations, despite their small size and limited funding, manage to build networks with academics and industrials, long-run partnerships, and, icing on the cake: the drug development cost should be much lower than big pharmas’.