Comparative Analysis of R&D Alliance

Networks between Japan, US and EU

Ryuichi NAKAMOTO, Sugiyama Jogakuen University

Keigo TAKAI, Graduate School of Economics, Kyoto University

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Table of Contents

Purpose of Research

Previous Study on Biotech Industry

Background of the Industry

Data Analysis

Conclusion

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Purpose of Research

Comparing the network structures among “legacy” pharmaceutical companies in US, EU and JP “Legacy” is influential through R&D process

Comparative analysis on structure of industry Automobile Electronics …Little research on pharmaceutical industry How “Keiretsu” structure can be observed?

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Previous study on Biotech Industry

Casper(2007)

Dense network of Hybritech senior managers

Zucker, Darby and Brewer(1998)

Diffusion of intellectual capital is key factor for development.

Prevezer(1997)

Particular “science base” magnet new firms

DeCarolis and Deeds(1999)

Firm’s geographic location, alliances with others, R&D expenditures are important for knowledge flows

Feldman(2003)

Established Anchor firms can create innovative output in the region

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Previous study on Biotech Industry

Baba and Walsh(2007)

Dense network among researchers facilitate innovation

Hasegawa and Watanabe(2007)

“Symbiotic Innovation”: small biotechs collaborate with large

pharmaceuticals

Tamada(2010)

Empirical research on industry-university cooperation with

patent data

Research on biotech industry focuses mainly on the

region, and researcher’s network rather than companies

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Research level: micro to macro

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Cluster

• Regional capability through industry-academia collaboration

• Cooperation

Company

• Competitive advantage

• Competition

Researcher

• Create innovation through collaborative research

• Cooperation

Macro

Micro

Background of the Industry

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Development & Sales Alliance Research Alliance

Coverage of analysis

Data and Analysis

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Data

“Legacy” Pharmaceutical Companies in US, EU and JP US

Abbott, Amgen, Baxter, Biogen Idec, Bristol-Myers Squibb, Celgene,

Eli Lilly, Genzyme, Gilead Sciences, Johnson & Johnson, Merck, Mylan, Pfizer

EU

Servier, Sanofi, Roche, Novo Nordisk, Novartis, Merck Serono,

GlaxoSmithKline, Boehringer Ingelheim, Bayer,Teva

JP Astellas, Chugai, Daiichi-Sankyo, Eisai, Mitsubishi-Tanabe, Takeda

Patent Data Source: Derwent Innovations Index (Web of Knowledge )

Patent Classification:A61K

Period: 2000-2012

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Whole Network Structure in US

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Whole Network Structure in EU

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Whole Network Structure in Japan

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Network Structure in US

(Top 10 applicants)

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Network Structure in EU

(Top 10 applicants)

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Network Structure in Japan

(Top 10 applicants)

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Whole Network Structure in Japan

(for reference)

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Source:Nakamoto[2012] Source:Nakamoto(2012)

Alliance Partner of US Companies

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PFIZER INC MERCK&CO INC BRISTOL-MYERS SQUIBB CO

AGOURON PHARMA (144) MERCK SHARP&DOHME CORP (1254) DUPONT PHARM CO (234)

PHARMACIA & UPJOHN CO LLC (127) MERCK FROSST CANADA LTD (99) ZYMOGENETICS LLC (27)WARNER LAMBERT CO (115) IST RICERCHE BIOL MOLECOLARE ANGELETTI (57) MEAD JOHNSON NUTRITION CO (19)PFIZER JAPAN INC (80) BANYU PHARM CO LTD (50) PFIZER INC (18)BEND RES INC (37) MERCK SHARP&DOHME ESPAN SA (19) MEDAREX INC (16)AMGEN FREMONT INC (30) ISIS PHARM INC (18) ALBANY MOLECULAR RES INC (13)ABGENIX INC (19) ATON PHARMA INC (16) KARO BIO AB (12)BRISTOL-MYERS SQUIBB CO (18) ANGELETTI P IST RICHERCHE BIO (14) CLAIROL INC (12)OSI PHARM INC (18) NICOX SA (13) ASTRAZENECA UK LTD (11)PHARMACIA CORP (18) ROSETTA INPHARMATICS LLC (11) LANTHEUS MEDICAL IMAGING INC (11)RAQUALIA PHARMA INC (17) SUNESIS PHARM INC (8) AMR TECHNOLOGY INC (9)NEUROGEN CORP (15) MSD KK (8) CEREP SA (8)COLEY PHARM GROUP INC (11) SCYNEXIS INC (8) P & G CLAIROL INC(8)WISCONSIN ALUMNI RES FOUND (10) METABASIS THERAPEUTICS INC (7) ADNEXUS BRISTOL-MYERS SQUIBB R&D CO (7)RINAT NEUROSCIENCE CORP (10) PFIZER INC (6) CORNELL RES FOUND INC (7)CAPSUGEL BELGIUM NV (10) TULARIK INC (6) MERCK&CO INC (6)CANCER RES TECHNOLOGY LTD (10) SCHERING CORP (6) AGOURON PHARMA (6)BIOORGANICS BV (9) KYORIN PHARM CO LTD (6) UNIV FLORIDA RES FOUND INC (6)MEDAREX INC (8) CSL LTD (6) GILEAD SCI INC (6)SYNTHON BV (8) MERIAL LTD (6) LEXICON PHARM INC (6)

Name=Subsidiary or affiliate company ( )=The number of joint application

Alliance Partner of EU Companies

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HOFFMANN LA ROCHE&CO AG F NOVARTIS AG SANOFI-AVENTIS

ROCHE PALO ALTO LLC (445) NOVARTIS-ERFINDUNGEN VERW GES MBH (508) AVENTIS PHARMA SA (542)

ROCHE DIAGNOSTICS GMBH (161) NOVARTIS VACCINES & DIAGNOSTICS INC (102) SANOFI-SYNTHELABO (395)GENENTECH INC (150) CHIRON CORP (47) HOECHST MARION ROUSSEL DEUT GMBH (262)SYNTEX USA LLC (100) SCRIPPS RES INST (44) SANOFIE SANTE LAB (94)ROCHE DIAGNOSTICS OPERATIONS INC (68) IRM LLC (43) MITSUBISHI TANABE PHARMA CORP (61)ARIUS RES INC (63) NESTEC SA (42) TANABE SEIYAKU CO (46)DSM IP ASSETS BV (43) NOVARTIS ANIMAL HEALTH US INC (41) MITSUBISHI PHARMA CORP (37)ROCHE VITAMINS AG (33) SPEEDEL EXPERIMENTA AG (30) CENT NAT RECH SCI (22)VERNALIS (27) ALCON INC (24) INSERM INST NAT SANTE & RECH MEDICALE (7)PIRAMED LTD (24) NEKTAR THERAPEUTICS (19) SYNTHELABO SA (7)CHUGAI PHARM CO LTD (18) SYNGENTA PARTICIPATIONS AG (19) AKZO NOBEL NV (6)ROCHE GLYCART AG (17) DANA FARBER CANCER INST INC (15) MITSUBISHI-TOKYO PHARM INC (6)ROCHE MOLECULAR SYSTEMS INC (17) XENON PHARM INC (14) SANOFI-AVENTIS US LLC (5)SIENA BIOTECH SPA (15) NOVARTIS NUTRITION AG (14) GENENTECH INC (4)ROCHE COLORADO CORP (14) GENENTECH INC (13) MERCK PATENT GMBH (4)GLYCART BIOTECHNOLOGY AG (13) XOMA TECHNOLOGY LTD (13) ELEGENE AG (4)BASILEA PHARM AG (10) ALCON UNIVERSAL LTD (12) UNIV MONTPELLIER I (3)TAKEDA PHARM CO LTD (TAKE) UNIV ZUERICH (11) MERRIMACK PHARM INC (3)MEMORY PHARM CORP (9) XENOVA LTD (9) SANOFI SYNTHELABO INDIA LTD (3)DSM IP PROPERTY NV (9) INSERM INST NAT SANTE & RECH MEDICALE (8) SANOFI WINTHROP IND (3)

Name=Subsidiary or affiliate company ( )=The number of joint application

Alliance Partner of JP Companies

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TAKEDA CHEM IND LTD SANKYO CO LTD EISAI INC

TAKEDA PHARM CO LTD (362) DAIICHI SANKYO CO LTD (105) EISAI R&D MANAGEMENT KK (218)

EASTMAN KODAK CO (11) UBE IND LTD (8) EISAI CORP NORTH AMERICA (13)TAKEDA SAN DIEGO INC (6) DAIICHI SANKYO HEALTHCARE CO LTD (7) GUILFORD PHARM INC (12)SYRRX INC (3) DAIICHI S C L (6) MGI GP INC (9)PARADIGM THERAPEUTICS LTD (3) SEQUELLA INC (5) EISAI LONDON RES LAB LTD (8)SUMITOMO CHEM TAKEDA AGRO CO LTD (3) SANKYO LIFETEC CO LTD (3) MERCIAN CORP (6)KAZUSA DNA RES INST FOUND (2) BTG INT LTD (3) MGI PHARMA INC (6)TAKEDA PHARM NORTH AMERICA INC (2) SANKYO AGRO CO LTD (2) ZYCOS INC (6)INTRA-CELLULAR THERAPIES INC (2) DAIICHI PHARM CO LTD (2) EISAI RES INST (3)NIHONEN BIOCHEMICALS KK (2) UNIV OSAKA (1) ELAN PHARM INC (2)JAPAN ENVIROCHEMICALS LTD (2) RENASCIENCE CO LTD (1) AESGEN INC (2)TOBIRA THERAPEUTICS INC (2) ZH GAN KENKYUKAI (1) EHM DZHI AJ DZHI PI INC (2)UNIV KYOTO (1) TOWA YAKUHIN KK (1) CHEMO-SERO-THERAPEUTIC RES INST (1)HOFFMANN LA ROCHE&CO AG F (1) MITSUBISHI KAGAKU FOODS KK (1) JAPAN SCI&TECHNOLOGY CORP (1)HOFFMANN LA ROCHE INC (1) METABASIS THERAPEUTICS INC (1) IGEN INC (1)TOKYO INST TECHNOLOGY (1) UNIV GEORGETOWN (1) UNIV KYUSHU NAT CORP (1)NORGINE BV (1) HITACHI METALS LTD (1) OSAKA IND PROMOTION ORG (1)CANBAS CO LTD (1) SANKO CO LTD (1) ASTRAZENECA AB (1)TAKEDA KIRIN SHOKUHIN KK (1) SNOW BRAND MILK PROD CO LTD (1) LOCOMOGENE INC (1)TAKEDA CAMBRIDGE LTD (1) DAIICHI SANKYO CHEM PHARMA CO LTD (1) EISAI CO LTD ECHI MITSUO (1)

( )=The number of joint application Name=Subsidiary or affiliate company

Conclusion

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Findings

Legacy firms in US,EU, and Japan have similar

“Hub and Spokes” alliance structure.

Legacy pharmaceutical companies build

alliances with subsidiaries or affiliate

companies.

Relatively few alliance partner overlap.

Alliances between Legacy firms.

Hierarchical structure couldn’t be seen by

this analysis.

“Keiretsu” structure can be partly observed.

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Discussion and Further Research

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Role of “Bridging” company between legacy

pharmaceutical companies

Why “Hub and Spokes” alliance structure can be seen

commonly?

“Companies” in the industry are in the severe

competition

Two types of knowledge management: open and close

Find balance between “cooperation” and “competition”

Supplier and “Keiretsu”

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Sharing and Accumulating Experience among suppliers

TOYOTA NISSAN HONDA

References

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