Value Networks

 and the true nature of collaboration


   

Chapter 6: Selected Case Studies

Drug Discovery Value Network

 

 

Drug Discovery Value Network


Mapping the unexpected

Dr. Paul Edwards, VP of Boehringer Ingleheim, interviewed Dr. Nicholas K. Terrett, co-developer of the Viagra(R) patent, to better understand innovation and productivity in the pharmaceutical industry. Dt. Terrett shared his recollections of events that occurred during the transition of Sildenafil from a potential anti-angina treatment to one targeting male erectile dysfunction (MED). Value Network Analysis (VNA) helped provide insights into value drivers and value creating relationships within the research area.

 

There were several objectives in this undertaking. The first was to demonstrate the applicability of Value Network Analysis to the pharmaceutical environment. A second objective was to demonstrate the ability of VNA to identify innovation and value in the discovery of a new use for a pharmaceutically active substance. Additionally, Edwards wanted to define some of the basic organizational value interactions within the pharmaceutical industry in its discovery of this new use for a human pharmaceutical, Viagra(R). A final objective was to understand value delivery and identify value drivers for adaptation.

The key roles were defined:

Consumer: These are individuals in society at large who are subject to some disease or alteration of their normal life that requires medication for treatment or cure. They are the consumers of the medicine.

 

Marketeer: This is the department with responsibility for gathering market data such as likely sales, market segmentation, and disease and patient knowledge. This knowledge is shared with sellers and researches, for example.

 

Provider: These are the individuals and groups who may purchase the medicines from the pharmaceutical company. Specifically, they may be medical doctors (GPs), health trusts, hospitals, or other government agencies.

 

Regulator: These are the governmental organizations who determine whether to allow a new medication to be sold for human/animal treatment or to cure medical ailments. Also they decide whether established medications can continue to be marketed.

 

Researcher & Developer: These are individuals with a scientific background who choose targets to work on and design novel putative medications. These are scientists who take the putative drug substance made by a research route, which is often inefficient. They then optimize the preparation of the drug product, to the right purity. Also included here are pharmaceutical scientists who develop and optimize delivery vehicles, formulations, and methods of delivery, that is, oral, inhaled, and topical, etc.

 

Trialler: This is the group of individuals responsible for designing and conducting clinical trials, gathering data, and writing the necessary reports to submit to regulatory agencies such as the Federal Drug Administration (FDA), to gain product approval for use on humans or on animals (for veterinary products).

 

Based on the recollections of Dr. Terrett, the following value network map was constructed. The numbers show the order in which events occurred. The solid green lines are tangible deliverables and the broken blue lines are intangible value deliverables. 

value network map innovation pharmaceutical research
The Viagra(R) value network map showing the order in which events occurred.

The Value Network Analysis helped illuminate some of the important relationship aspects in the success of Viagra(R). The approach for a new use for the discovery was contrary to the more usual way of working for the pharmaceutical industry, namely that often consumers have little involvement/power (at least in Europe). Here, consumers were involved directly. There was also a good deal of help from providers (specifically doctors and clinical groups representing their patients' unmet medical conditions. Also there was a novel clinical trial design aided by the scientific community volunteering their efforts to help.

 

A full report of this analysis was published by Dr. Edwards in Drug Discovery Today. Several insights brought out through Value Network Analysis on the indication switch for Viagra(R) are in agreement with more general comments found in the literature on, for example, innovation within the pharmaceutical industry. Further, Dr. Edwards identified some of the societal impact of this successful effort, including that the process "legitimized" the underlying condition and led to an opening up of a broader discussion of MED in the wider community. It made it acceptable to talk about MED and led men to talk more about other aspects of their healthcare, such as their cardiovascular problems.

 

The full article is here:


Research Report: Value networks identify innovation in 21st century pharmaceutical research, Paul J. Edwards, January 2009. (pdf)