Most people marvel at the level of innovation demonstrated by the biopharmaceutical industry in bringing new products to the market – especially in the past 20 years. However, there is a crisis looming in the industry that should be a concern to all of us who take for granted the constant pace at which new treatments, and increasingly cures, have emerged from the laboratories of current sector incumbents. In the book, we examine the evolution of the biopharmaceutical industry to understand how it became what we term a "unicorn industry" with a unique, US-centered business model that has led to multiple blockbuster products (aka, unicorns) year after year. We explore how past success has created perceived barriers to innovation diversification beyond the chemical or biological-based biopharmaceutical product, and highlight the warning signs of the industry’s decline. We define a potential pathway for transforming the industry’s business model by broadening the definition, sources, and enablers of innovation beyond the traditional biopharmaceutical product. We introduce and advocate for the 80-80 Rule - "Being 80% confident that you will only be 80% right the first time should feel normal." The 80-80 Rule is a theme that emphasizes speed and willingness to embrace uncertainty and overcome internal barriers to change. It sets the standard for redefining innovation as a platform to reignite growth of the biopharmaceutical industry.
"The biopharmaceutical industry, in general, has lagged behind in embracing the potential of rapidly evolving healthcare technology. To remain relevant, it needs to redefine its role and value proposition in the broader healthcare ecosystem. Redefining Innovation challenges conventional wisdom in which the traditional focus has been on the creation and launch of blockbuster drugs. The new focus can and should be around how digital health solutions may be applied in conjunction with medications to optimize care delivery and improve health outcomes." - David Rhew, M.D. Chief Medical Officer and Head of Healthcare and Fitness, Samsung Electronics America.
"The authors make a strong case in describing the difficulties faced by many biopharmaceutical companies in re-defining their Innovation Agenda which today is almost exclusively focused on developing and commercializing products. Their perspective on broadening the way incumbents approach innovation will be a great gap-filler."– Marcus Wilson, President, HealthCore
"The 80-80 Rule creates urgency for Senior Leadership to redefine, communicate and champion their organization’s Innovation Agenda." – William Fleming,President, Healthcare Services, Humana
"Given the nature and magnitude of the challenges ahead of us in truly improving healthcare in the U.S., we need less fragmentation and more collaboration and partnering. Messrs. Kansal and Huth have described this opportunity based on their personal experience in setting up cross-functional collaborations across the ecosystem." - Dr. David Feinberg. President and Chief Executive Officer, Geisinger
"Overall I find this book to be a refreshing perspective from biopharma insiders that are trying to help their industry sector renew its business. It will be a great platform for meaningful dialog around the future of healthcare and the role that the biopharma industry will play." - Ed Yu. Chairman, Vascular Cures and Retired Partner, Strategy & (PwC)
"Redefining Innovation puts forth a compelling argument about why the standard operating procedures of the past will not provide a sustainable pathway to future success. The 80-80 Rule serves as a blueprint which can be applied beyond the biopharma industry and should be taken seriously by all sectors within healthcare as well as other industries clinging to past glory." - Dr. Z. Colette Edwards, Managing Editor of the Wharton Healthcare Quarterly, the journal of the Wharton Health Care Management Alumni Association
"Over the past few years, I have seen a gradual increase in the willingness of biopharma leaders to engage in exploring new types of relationships with health systems. We are discussing collaborative projects to ensure adequate representation of diverse populations in clinical trials, outcomes-based reimbursement models, and health improvement opportunities beyond the pharmaceutical product. Success with these initiatives support the authors’ recommendations for biopharmaceutical manufacturers to examine and transform both their historical approach to innovation and current business model." - Michael J Dowling, President and CEO Northwell Health
"The authors challenge the mainstream biopharmaceutical industry to consider whether recent gaps relative to its historical track record of success may require a broader definition of innovation. At the same time, I am very encouraged by the opportunity for companies engaged in breakthrough science and technology coupled with innovation in the areas of pricing, reimbursement and market access models to treat and potentially cure serious and life-threatening conditions, where limited therapeutic options have existed to date." - Joseph La Barge, Chief Legal Officer - Spark Therapeutics
Setting the Context
The 80-80 Rule
Section I REDEFINING INNOVATION
1 Rise of a Unicorn Industry
2 The Unicorn Industry Loses Its Wings
3 An Experiment in Challenging the Status Quo
4 Innovation Redefined
5 Next-Generation Unicorn Industry
Section II IGNITING GROWTH
6 Applying "The 80-80 Rule"
7 Setting Up for Success
8 Finding White Spaces
9 Developing New Ventures
10 Becoming Adept at Partnering