And what about innovation? Ultimately, companies need to emphasize innovation throughout their businesses, not just in early-stage R&D. Creating efficiencies through new technologies, exploring outsourcing options, and testing more productive organizational models can improve a company's ability to deliver all classes of drugs to market. Jan-Anders Karlsson, formerly of Bayer and now CEO of S*BIO, a Singapore-based biomedical company, put it best: "Innovation is not about new targets, it is about successfully bringing to market a product that meets an unmet medical need."

David Blumberg is a partner in Accenture's health and life sciences practice. He can be reached at david.l.blumberg@accenture.com
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This article is drawn in part from a January 2005 Accenture research report, "Rethinking Innovation in Pharmaceutical R&D." To request a copy, please contact Michael Edwards via email at: michael.edwards@accenture.com
or visit http://www.accenture.com/ and click on "Research & Insights," and select "Life Sciences."