Managing Biotechnology

Preface

Since its founding four decades ago, the modern biotechnology industry has been a source of significant innovation across many parts of the economy, especially in the area of human health. Once-fatal diseases—ranging from HIV and hepatitis C to many cancers—are now chronic conditions or have been effectively cured, due to the introduction of innovative biotech medicines. Many of these medicines were discovered and developed by nimble entrepreneurial companies. New techniques and technology platforms under development by companies both large and small (and in academic, government, and private research labs) continue to create optimism that many more poorly treated, or untreated, conditions will soon be addressed, including many diseases prevalent in aging populations.

Over the same four decades, the rise of digital technologies has restructured the order of many industries, giving a majority of the global population access to enormous computing power and information, while simultaneously enabling previously unimaginable connectivity through social media platforms. These technologies have had an impact on the delivery and consumption of healthcare, although the pace of change in this industry has lagged many other parts of the global economy.

While scientific innovation remains at the core of the biopharma industry, the long-term trend of constrained health systems budgets and persistent public pressure on drug prices has put the traditional biopharma business model under ...