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PROGRAM ON THE PHARMACEUTICAL INDUSTRY

MASSACHUSETTS INSTITUTE OF TECHNOLOGY EST. 1991
PROFESSORS THOMAS J. ALLEN, & CHARLES L. COONEY, STAN FINKELSTEIN, M.D., &
ANTHONY J. SINSKEY, CO-DIRECTORS

http://web.mit.edu/popi/index.html

   The global pharmaceutical industry is continuously evolving in the face of advances in medical science and technology, changing regulatory requirements, and rapid shifts in the structure of the health care market. The MIT Program on the Pharmaceutical Industry (POPI) collaborates with its industry partners to investigate the factors that drive, constrain, and enhance the productivity and competitiveness

of the industry, helping to strengthen and sustain its success.

    In assessing the productivity of drug discovery, Center researchers helped build a financial simulation model that has added to the industry's understanding of costs, risks, and returns in successfully developing new drugs. Innovation and technology transfer research projects include: the Economic Impact of Pharmacogenomics and Personalized Medicine, Technology Transfer and the Integration of Technological Innovation, and The Role of Publicly Funded Research in Private-Sector Pharmaceutical Innovation. An in-depth observation-based study of pharmaceutical manufacturing led to influential findings on the increasingly important (but heretofore largely neglected) strategic role that manufacturing can play in enhancing the competitiveness of firms in the industry. Research on the pharmaceutical marketplace has led to important success in quantifying the quality attributes of cardiovascular, gastrointestinal, antidepressant, and antihypertensive drugs, and helped inform the debate over drug prices.


   The Center's groundbreaking work in the area of economic benefits and workplace productivity first quantified the tremendous adverse economic impact of untreated mental depression in a study that was presented at a news conference attended by Tipper Gore and widely covered in the media. The Center has also been involved in an evaluation of the World Health Organization's "Essential Drug List" of pharmaceutical therapies available in the developing world.

   POPI has recently initiated a detailed study of the communication and interaction patterns among firms (large and small) located within the 'Cambridge/Boston Biotech Cluster'. This is the first study of its kind using actual reports of communication among scientists with a control group of firms located outside of the geographic. It will test the widely held beliefs in the benefits of geographic clustering of firms.

   The Center has offered specialized executive education to capacity attendance in forums such as its Summer Professional Programs, Briefings for Senior Corporate and Technical Management, and short courses on Management Issues in the Pharmaceutical and Biotechnology Industry, and Economic and Statistical Methods in the Assessment of Health Outcomes.