A Role for Virtual Biotechnology Companies in Drug Discovery and Development?

19(3) Journal of Commercial Biotechnology 10, 2013

11 Pages Posted: 13 Oct 2014

See all articles by Dianne Nicol

Dianne Nicol

University of Tasmania

John Liddicoat

University of Cambridge - Faculty of Law; University of Tasmania

Christine Critchley

Swinburne University of Technology

Date Written: June 8, 2013

Abstract

The orthodox business model of many drug discovery and development companies centers on adding value to early-stage discoveries prior to engaging with large pharmaceutical companies to bring products to market. Anecdotal observations suggest some companies are moving to a 'virtual' business model — instead of employing in-house scientists, a skeletal management team runs the company and out-sources all research and development. This article presents a novel method to determine whether companies are virtual, based on author bylines in peer-reviewed journal articles.

Applying this method to Australian companies in this sector, the size of the cohort identified as virtual was much larger than anticipated, around 52%. The accuracy of this method has been verified statistically using interview data. This article discusses the value and limitations of this method, positing that it can be used to analyse industry and policy implications that may result from widespread adoption of the virtual model.

Suggested Citation

Nicol, Dianne and Liddicoat, Johnathon and Critchley, Christine, A Role for Virtual Biotechnology Companies in Drug Discovery and Development? (June 8, 2013). 19(3) Journal of Commercial Biotechnology 10, 2013, Available at SSRN: https://ssrn.com/abstract=2508987

Dianne Nicol (Contact Author)

University of Tasmania ( email )

French Street
Sandy Bay
Tasmania, 7250
Australia

Johnathon Liddicoat

University of Cambridge - Faculty of Law ( email )

10 West Road
Cambridge, CB3 9DZ
United Kingdom

University of Tasmania ( email )

French Street
Sandy Bay
Hobart, Tasmania 7001
Australia

Christine Critchley

Swinburne University of Technology ( email )

Cnr Wakefield and William Streets, Hawthorn Victor
3122 Victoria, Victoria 3122
Australia

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