Science Business: The Promise, the Reality, and the Future of Biotech [Hardcover]

Gary P. Pisano (Author)

Book Description

ISBN-10: 1591398401 | ISBN-13: 978-1591398400 | Publication Date: November 14, 2006 | Edition: 1

Why has the biotechnology industry failed to perform up to expectations - despite all its promise? In "Science Business", Gary P. Pisano answers this question by providing an incisive critique of the industry. Pisano not only reveals the underlying causes of biotech's problems; he offers the most sophisticated analysis yet on how the industry works. And he provides clear prescriptions for companies, investors, and policy makers seeking ways to improve the industry's performance. According to Pisano, the biotech industry's problems stem from its special character as a science-based business. This character poses three unique business challenges: how to finance highly risky investments under profound uncertainty and long time horizons for R&D, how to learn rapidly enough to keep pace with advances in drug science knowledge, and how to integrate capabilities across a broad spectrum of scientific and technological knowledge bases.The key to fixing the industry? Business models, organisational structures, and financing arrangements that place greater emphasis on integration and long-term learning over shorter - term 'monetisation' of intellectual property. Pisano maintains that all industry players - biotech firms, investors, universities, pharmaceutical companies, government regulators - can play a role in righting the industry. The payoff? Valuable improvements in health care, and a shinier future for human well-being.

Editorial Reviews

Review

How could an industry invented and staffed by brilliant, capable people have such a dismal long-term financial record? And why do investors keeping throwing money into the ring? --The Boston Globe, May 6, 2007

From the Back Cover

"A very insightful analysis of the remarkable evolution of the biotech industry. This is required reading for all involved in this process, biotechnology entrepreneurs, venture capitalists, academics, research centers, policy makers and investors.

- Henri Termeer, Chairman, President and CEO, Genzyme Corporation

“In this startling and cogent diagnosis of, and prognosis for, the biotechnology industry, Gary Pisano weaves a powerful economic argument that all is not well in biotechnology, an industry that should be the best hope for a better healthcare for us all. We in the industry need better to grapple with the challenges posed by this provocative book."

- Dr. Josh Boger, President and CEO of Vertex Pharmaceuticals

“The industrial structure that has arisen in the United States to develop and exploit the potential of biotechnology is widely regarded as extremely effective. But is it? Few biotech firms have made a profit, and the rate of introduction of new effective pharmaceuticals is not impressive. Gary Pisano’s fine study is the first to bring these ideas into the open, analyze them, and reflect on what they might mean for the future of biotechnology.”

- Richard Nelson, George Blumenthal Professor of International and Public Affairs, Business and Law, Emeritus, Columbia University

“Gary Pisano's analysis uncovers surprising facts about the industry's innovation power and productivity, challenging conventional wisdom. Science Business is refreshing and inspiring for anyone who is interested in the future success of biotechnology, including life science executives, investors, policy-makers and, most importantly, the patients who it has the potential to help the most"

- Dr. Daniel Vasella, Chairman & CEO, Novartis AG

See all Editorial Reviews

Product Details

• Hardcover: 237 pages
• Publisher: Harvard Business School Press; 1 edition (November 14, 2006)
• Language: English
• ISBN-10: 1591398401
• ISBN-13: 978-1591398400
• Product Dimensions: 9.5 x 6.4 x 1 inches
• Shipping Weight: 1.2 pounds (View shipping rates and policies)
• Average Customer Review: 3.8 out of 5 stars  See all reviews (12 customer reviews)
• Amazon Best Sellers Rank: #105,631 in Books (See Top 100 in Books)
  • #36 in Books > Business & Investing > Management & Leadership > Strategy & Competition
  • #60 in Books > Medical Books > Basic Sciences > Biotechnology

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Customer Reviews

Most Helpful Customer Reviews

30 of 33 people found the following review helpful:

5.0 out of 5 stars Seriously just fun to read, December 8, 2006

By 

Elliot Kleiman "technophilic" (San Diego, CA United States) - See all my reviews
(VINE VOICE)    (REAL NAME)   

This review is from: Science Business: The Promise, the Reality, and the Future of Biotech (Hardcover)

Really just a wonderful introspective into the realm of the biotechnology sector. The writing style is excellent, entertaining, and very analytical. He does a fantastic job of illustrating the scientific challenges that make biotech unique. My favorite chapter in the first section (Section I) entitled, "The Science of the Business" was chapter 4, "Drug R&D and the Organizational Challenges". Here, he explains quite remarkably the differences between Drug R&D and other high tech industries, which he breaks down into the terms of "modularity" and "integrality"; just fantastic!

The second section (Section II) discusses, "The Business of the Science" which is equally interesting. In this section my favorite chapter was chapter 6, "The Performance of the Biotech Industry: Promise Versus Reality". Here he explores the financial and operational issues pertaining to the sector. I think manager/mba-types will like this second section. What I can say is that I learned quite a bit from this second section including info on raising capital (e.g. IPO, Partnering, licensing, etc.), and much about "the monetization of Intellectual Property".

Overall, I must say this is - IMHO - an unbiased expose on the biotech sector. In order to truly understand its history, its unique challenges, one should strongly consider this book b/c it hinges upon a number of terrific concepts that need to be discussed and illustrated for the unaware. The author assumes the reader knows nothing, so pretty much anyone with a penchant for biotech will enjoy. I learned a lot from this book and it was fun too. Five star rating all the way!

6 of 6 people found the following review helpful:

5.0 out of 5 stars Extrememly lucid, well thought out analysis, May 17, 2007

By 

Jeff (Northern California) - See all my reviews
(VINE VOICE)   

Amazon Verified Purchase

This review is from: Science Business: The Promise, the Reality, and the Future of Biotech (Hardcover)

For my money, most business school professors write with a detached, dry atmosphere about business topics.

Not Gary Pisano!

He has a strong point of view that the ecosystem for biotech is not working well. His observations about why are right to the point and convincing.

His prescriptions are well worth considering.

If you're new to biotech, this is a great book to start out with. I would then proceed to Building Biotechnology, which is also a fine book.

6 of 7 people found the following review helpful:

2.0 out of 5 stars stale and insular, January 24, 2009

By 

kerrjac - See all my reviews

Amazon Verified Purchase

This review is from: Science Business: The Promise, the Reality, and the Future of Biotech (Hardcover)

This book begins with the insight that good science is different from good business. Beyond this, I found the rest of the book kind of stale.

The author extensively discusses the idiosyncrasies of the biotech industry. He talks about the great amount of capital and trail-and-error required in drug development, supposedly with the intention of arguing that biotech is different from other sectors. However, I kept thinking, "But of course biotech is different from other sectors, it's a different sector." What this book lacked, I thought, were more comparisons and similarities between other areas of business. While biotech is the only industry that actively seeks drugs that hit molecular targets, it's not the only industry that heavily progresses through research and development. I was surprised that the author didn't tap the extensive history of R&D in other private sectors. After all, there's an array of specific examples to choose from, be it the microprocessor chip wars or the development of hybrid cars. Using lessons from those endeavors, and connecting them to biotech, I thought, could've been pretty novel.

Instead, the author rarely pulls insights from outside of the biotech industry, while maintaining that biotech is new, not fully developed, and can learn a lot from business. As such, the book has a very insular feel and seems very limited in scope.