Inderscience Publishers

The changing role of technology suppliers in the pharmaceutical industry: the case of drug delivery companies

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In this paper, preliminary results of a research project on strategies of drug delivery companies (DDC) are presented to discuss the changing role of technology suppliers in the pharmaceutical industry. Changes in the pharmaceutical industry are presented briefly and related to developments in the drug delivery industry. The early observations are contrasted with existing views from the literature on outsourcing in general and outsourcing of R&D activities in particular. The importance of the accessibility of "complementary activities", and "appropriability regimes" in the pharmaceutical industry and its role in the creation of strategic opportunities for the DDCs is then elaborated upon. Propositions concerning the shift of drug delivery companies to become fully integrated pharmaceutical companies are forwarded on observations of the current status and recent developments in the drug delivery industry. The strategic path for DDCs is outlined based upon three sets of motives pharmacotherapy improvement related motives, financial motives and strategic motives.

Keywords: technology collaboration, pharmaceutical industry, product development, appropriability

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