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Fig. 3.14. Pipeline (Projects): Major Pharma Company*

Source: Garaud J-J, Novartis, R & D Directions Conference, Feb. 2004

Fig. 3.14. Pipeline (Projects): Major Pharma Company*

Source: Garaud J-J, Novartis, R & D Directions Conference, Feb. 2004

potential for products, good fit of products for the company's therapeutic areas in research and sales, and in-license and proprietary products in pipeline [38, 39].

Another pipeline for an R&D organization is displayed in Figure 3.15 for a biotechnology company. The company shown here, Amgen, is the largest by far among biotechnology companies with over 14,000 employees in 2005, over $8 billion in sales, about $1.5 billion in R&D expenses worldwide, and more than 20 alliances or partnerships. However, the pipeline size is about 20 molecules and projects in clinical trials in four focused therapeutic areas, which is about one-tenth the size of the major pharmaceutical companies. Compared with a drug company, a biotechnology company has less financial resources (R&D budget), fewer research alliances, smaller R&D staff, usually fewer research areas of expertise, all of which creates a leader organization with fewer possible outcomes. However, this size can be an advantage in several ways: flexibility to move into new research areas, more focus in research with less internal competition for resources, being a preferred partner with small biotechnology companies, and hopefully more streamlined or less complex decisions with fewer research molecules [40, 41].

Research creates an important outcome through external research collaborations with universities and health care institutions, specifically with the scientists and clinicians at those institutions, that is, the investigators for a company. Certainly, a company needs to work with experienced clinical researchers to get the work done to the quality necessary for product

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