Business Organization of R&D Activities in Big Pharma Companies Essay

Business Organization of R&D Activities in Big Pharma Companies - Essay ExampleGlaxo Smith Kline (GSK) has the strongest pipeline in pharmaceutical industry the cosmos over. This pipeline is discoverd when out of millions of compounds screened about 250 make it to pre-clinical testing, 10 make it to clinical testing and tho unrivalled gets approved for patient use. With these astronomical trial efforts involved, R&D activity needs to be crisp and fast at all stages to keep the pipeline growing. GSKs recent robust performance is threatened well by this very patent and pipeline uncertainties. Therefore the period 2004-06 will require the company to ponder methods to emerge out of these uncertainties as competition mounts pressure throughout this period. In order to resolve its diseconomies of dental plate on formal innovation(each commercially released drug is equivalent to an innovation), GSK has restructured the companys R&D functions into strategic business units, styled op tic of Excellence for Drug Discovery(CEDD), breaking from an organic and holistic structure in order to hasten unconscious process of innovation. GSK appears to be attempting to keep its pipeline filled via this method.GSK followed this restructuring with another round when it introduced Medicine Development centers (MDCs).The main toil of MDCs is to streamline decision making and maximize the global development opportunities for each production. The MDCs are responsible for product development from concept stage to manufacturing and marketing stages.MDCs enter into collaborations with CEDDs at an early stage thus incorporate R&D, manufacturing and marketing functions. Because of the smaller scale of these units the decision layers in each activity has not only been reduced but has also become transparent and accountable.Intra makeup communication is now specialized in competence functions and thus is quick and decisive. A web site on company information describes the organizat ion structure and R& D activity at GSK to fit in the above description to the highest degree exactly The organizational structure of GSK is designed to make our company a model for excellence in the pharmaceutical industry - a new company that represents best practice in every way. GSK is a company with the size and scale to invest in the tools we need to succeed, and to drive that success going forward. To achieve that goal, GSK is organized as a flexible company, capable of responding quickly to a rapidly changing marketplace. form globally to coordinate activities and gain the benefits of size and scale, the company is built on smaller, customer-focused units, dedicated to delivering medicines that relieve the trauma of patients around the world. The new and innovative model for R&D, the focused structure of our pharmaceutical business throughout the world and the organization of our global services such as IT and Procurement are some of the highlights in the approach which wi ll lead our success.At GSK, scientists in Research and Development are committed to capturing