The Business of Healthcare Innovation
The Business of Healthcare Innovation is a wide-ranging analysis of business trends in the manufacturing segment of the healthcare industry. It provides a thorough overview and introduction to the innovative sectors fueling improvements in healthcare: pharmaceuticals, biotechnology, platform technology, medical devices and information technology. For each sector, the book examines the basis and trends in scientific innovation, the business and revenue models pursued to commercialize that innovation, the regulatory constraints within which each sector must operate and the growing issues posed by more activist payers and consumers. Specific topics include market structure and competition, the economics and rationale of product development, pricing, sales and marketing, contract negotiations with buyers, alliances versus mergers, business strategies and prospects for growth. Written by professors of the Wharton School and industry executives, the book shows why healthcare sectors are such an important source of growth in any nation's economy.
- Electronic book text
- 26 Jul 2012
- CAMBRIDGE UNIVERSITY PRESS
- Cambridge University Press (Virtual Publishing)
- Cambridge, United Kingdom
- 2nd Revised edition
- 89 b/w illus. 65 tables
About Lawton Robert Burns
Lawton Robert Burns, Ph.D., MBA is the James Joo-Jin Kim Professor, Professor and Chair of Health Care Management and Director of the Center for Health Management and Economics at the Wharton School, University of Pennsylvania.
'Burns has produced an exceptional successor to [the first edition of The] Business of Healthcare Innovation with this new edition. The original made an important contribution to those of us who work and invest in the life sciences. The updated and expanded chapters on challenges and possibilities for the pharmaceutical and biotechnology industries, the new insights into the potential of digital health, and the overall theme of convergence of technologies into an innovative model of modern medicine, make [this] a timely and valuable volume.' G. Steven Burrill, CEO, Burrill and Company 'Innovation is the answer to the cost and quality challenges in health care today. Despite its importance, few scholars have offered a comprehensive assessment of innovation in medicine - what it is, how it arises in specific sectors, and what are the barriers to achieving transformation of health care. This ambitious work makes a substantial contribution to our understanding of this key concept in health care.' Kevin A. Schulman, Professor of Medicine and Gregory Mario and Jeremy Mario Professor of Business Administration, Duke University 'Every entrepreneur, no matter whether they be inexperienced or experienced, biotech or device, scientist or business person, needs to read [The] Business of Healthcare Innovation. It is not enough today to have a great idea; successful startups require knowledge of the past, present and future of the ... industry if they want a real shot at making a difference.' Mark Levin, Partner and Co-Founder, Third Rock Ventures 'Since the first edition of The Business of Healthcare Innovation, the workings of the industry have become even more complex, intertwined, and tricky to navigate. The industry's evolution is effectively captured in this successor edition which includes important updates relevant to traditional and newer, 'maverick' innovators who will find the insights and frameworks described to be invaluable.' Peter A. Tollman, Senior Partner and Managing Director, The Boston Consulting Group 'For an industry that serves the needs of patients with innovative medicines, there are few scholarly books that analyze the underlying business of the life sciences. The Business of Healthcare Innovation addresses this important need with a thoughtful and engaging analysis of the pharmaceutical and biotechnology sectors. I particularly enjoyed the discussion on biotech, including discussions on the range of business models and on the symbiotic relationship of biotech companies with pharma. If you're interested in the 'business of science', this is really worth a read!' John Maraganore, CEO, Alnylam 'This book is the authoritative text on the medical device industry. The authors combine extensive research with intimate insights to distil a complex topic to its essential ingredients.' Dan Starks, Chairman and CEO, St Jude Medical 'Several significant efforts by government and the private sector are underway to transform health care. These efforts center on diverse performance-based reimbursement mechanisms that bind those who provide care with those who purchase care. As Burns astutely notes, these efforts appear to view those organizations that provide products and services to the industry as incidental to the transformation of care. This view is a mistake. Companies that deliver innovative advances in the life sciences, medical devices and health information technology can be and are significant contributors to our collective efforts to improve care. Vaccines, medical imaging, pacemakers and electronic health records are examples of these contributions. The Business of Healthcare Innovation does an exceptional job of describing the nature, challenges and contributions of the companies that produce these products and services. This understanding is essential ...' John Glaser, CEO, Siemens Health Services 'This book does an excellent job of breaking down [a] complicated subject into its unique elements and analyzing each in a clear, direct style that illuminates the key issues facing this rapidly changing industry. The discussion of the sources of, and impediments to, device innovation are particularly welcome. I recommend this astute analysis to healthcare executives, policy-makers, investors, innovators and anyone else who wants to understand the critical importance and future direction of the medical device industry and medical device innovation.' Michael A. Mussallem, Chairman and CEO, Edwards Lifesciences Corporation 'Health care looms as the central issue for the swarm of baby boomers seeking the goal of wellness in this decade. This primer by Robert Burns and his colleagues nicely summarizes the challenges of developing new technologies that will be relevant and affordable. How will health care reform influence the health care industry to innovate and invest in new technologies? What will new regulatory approaches do to early stage investment in new therapies? How will the United States remain a net exporter of medical device and pharmaceuticals that is the envy of the rest of the world? Can uncommon profitability in the device sector be perpetuated? How are the processes of research and development, collaboration, mergers and acquisitions different in the pharmaceutical, biotechnology and medical device industries? The answers can be found in this articulate and well referenced text.' Stephen Oesterle, Senior Vice-President, Medtronic 'Lawton Burns provides an excellent overview of the competitive dynamics of the medical technology sector which has had increasingly [significant] effects on health service costs and outcomes. Understanding the dynamics of this sector is important for all future health care leaders and this comprehensive and accessible book provides first-rate coverage of the subject.' Regina Herzlinger, Harvard Business School
Table of contents
List of figures; List of contributors; 1. The business of healthcare innovation in the Wharton School curriculum Lawton R. Burns; 2. The pharmaceutical industry: re-booted and re-invigorated Jonathan P. Northrup with Marina Tarasova and Lee Kalowski; 3. Pharmaceutical strategy and the evolving role of mergers and acquisitions (M&A) Lawton R. Burns, Sean Nicholson and Joanna P. Wolkowski; 4. The biotechnology sector - therapeutics Cary G. Pfeffer; 5. Biotechnology business and revenue models: implications for strategic alliances and capitalization Stephen M. Sammut; 6. The medical device sector Kurt H. Kruger and Max A. Kruger; 7. The healthcare information technology sector Adam C. Powell and Jeff C. Goldsmith; 8. Healthcare innovation across sectors: convergences and divergences Lawton R. Burns, David M. Lawrence and Stephen M. Sammut; Index.