Strategic Decision Making under Uncertainty: R&D and Pricing Strategies in Biopharmaceuticals

Abstract

This symposium explores the antecedents, drivers, and impacts of product decision making in the biopharmaceutical industry. While research in strategy and economics has explored how policies impact new product development and how firms compete, many gaps remain in terms of our understanding of decision making and performance. The papers featured are aimed at addressing these gaps. This session will feature the presentation of three papers focusing on: (1) the effect of intellectual property policy change on neglected disease research, (2) the relationship between research portfolio depth and breadth and firm performance, and (3) the drivers of price increases of patented pharmaceuticals. A discussant will unify the themes presented across the papers, provide developmental commentary, and suggest related avenues from future research on product development and portfolio management in the biopharmaceutical sector. Firm-Level Pricing Strategy: When Irrelevant Products Are Relevant Presenter: David Ridley; Duke U. Presenter: Colleen M Cunningham; Duke U. Search Processes and Product Development Success: Evidence from the Global Pharmaceutical Industry Presenter: Nilanjana Dutt; Bocconi U. Presenter: Elena Vidal; Baruch College-The City U. of New York Intellectual Property Rights and Research on Neglected Diseases Presenter: Keyvan Vakili; London Business School