Market Overview

Day of Pharma Blockbusters Are Over as Industry Reboots for Agile, Open Innovation


With the drug industry moving away from the all-in-one blockbuster model, pharma companies need to develop more products faster and race to market. As a result, companies are embracing an open innovation structure and scavenging old actives to speed development– to succeed, companies need to get smart at identifying outside partners in areas such as formulation and delivery, says Lux Research.

“Tailoring the formulation and delivery of therapy provides a cost-effective method to enhance or repurpose drugs, as well as increase relevance when expanding to new markets,” said Yan Xiang Yang, Lux Research Analyst and the lead author of the report titled, “Ranking Emerging Delivery Technologies: Scouring the Toolbox to Find a Nut to Fit the Bolt.”

Lux Research positioned technology developers on the Lux Innovation Grid based on their Technical Value and Business Execution – companies that are strong on both axes reach the “Dominant” quadrant. They focused on four markets with the greatest potential – cancer, diabetes, vaccines and pain. Among their findings:

  • Halozyme the leader in cancer. In cancer therapeutics, Halozyme is the clear leader with Nanocarrier as the only other company in the “Dominant” quadrant. Halozyme is the only biochemical technology developer in the study with a cancer therapeutic awaiting FDA approval.
  • Bespak, Aerogen lead in diabetics devices. Led by Bespak, Aerogen, and Buehler, a clutch of “dominant” companies is developing novel devices to target a global market of over 356 million diabetics. Bespak and Buehler thrive on traditional subcutaneous injectors, whereas Aerogen persists at pulmonary delivery of insulin.
  • Flamel, SNBL, Liquidia lead in vaccines. Since a single product can top over 100 million doses, vaccines represent a huge market. Flamel Technologies, SNBL and Liquidia Technologies are the “dominant” leaders, but neither is mature and each has a “wait and see” Lux Take.
  • Depomed, Phosphagenics lead in pain medicine. Many blockbuster pain products are going off patent in the next five years, creating a need for new or generic pain relieving products. Depomed, Intellipharmaceutics, Phosphagenics, Flamel and Cafosa are the “Dominant” firms in this space, with many focusing on products less susceptible to abuse.

The report, titled “Ranking Emerging Delivery Technologies: Scouring the Toolbox to Find a Nut to Fit the Bolt,” is part of the Lux Research Formulation and Delivery Intelligence service.

About Lux Research

Lux Research provides strategic advice and on‐going intelligence for emerging technologies. Leaders in business, finance and government rely on us to help them make informed strategic decisions. Through our unique research approach focused on primary research and our extensive global network, we deliver insight, connections and competitive advantage to our clients. Visit for more information.

Lux Research, Inc.
Carole Jacques, 617-502-5314

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