Pfizer and Merck cooperate to fight cancer
Uploaded by DISABLED USER on Nov 22, 2017
Pfizer and Merck cooperate to fight cancer
Analyzing the companies’ benefits
Based on Pre-Thesis Research Paper
Popova Evgeniia
ACKNOWLEDGMENTS
This publication (with minor changes) arises from class assignment paper with the original title “Pfizer and Merck cooperate to fight cancer – Analyzing the companies’ benefits” written for the course “Business Cooperation: Case Studies” in the University of Muenster. I wish to recognize the valuable help of my supervisor Dipl.-Math. Dr. Eric Christian Meyer provided during my research.
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ABSTRACT
Biotech revolution changed pharmaceutical industry triggering a wave of risky collaborations between rivals. Based on the research findings, we answer the question why cooperation in the field of immuno-oncology is a better strategy for Pfizer and Merck KGaA, which aim to achieve competitive advantage quickly and with minimum effort. Combining their assets and core expertise companies realize benefits of greater size and variety in the conduct of research, development and commercializing of their new breakthrough therapy for cancer treatment.
INTRODUCTION
Biotech revolution changed pharmaceutical industry promoting the role of alliances and product licensing cooperative agreements as technologies of drug research and development (R&D) advanced. This development has in turn triggered a new trend – risky “competitive” cooperation between rivals in attempts to realize advantages of greater size and variety in the conduct of R&D. This paper examines strategic alliance between Pfizer and Merck KGaA to find out benefits companies gain through cooperation strategy employed.
Benefit is defined in the Cambridge English dictionary as a “helpful or good effect, or something intended to help” meaning in the economic concept that partnership is formed to provide advantages for the parties. In contest of this paper “Benefit of cooperation” refers to a positive effect companies achieve through combining their complementary assets and competencies.
Analysis is carried out on the methodological basis. Conditions of the deal and nature of R&D in pharmaceuticals determine application of concepts of economies and core competencies.
First, the large variety of therapeutic classes of medicines opens the way to specialize in certain of them and to develop different types of competencies (skills necessary for the development of antibiotics differ from those in the field of psychotropic drugs): both Pfizer and Merck specialize on immunology. The relevance of one or another class of drugs (and respectively the competencies needed to develop it) depends on the operating environment: both companies focus on immuno-oncology and develop complementary type of drugs. This is the base for...