Separation of R&D Processes in an Independent Biologic Firm

Case of Amgen Inc.

Abstract

This paper describes the R&D productivity of a biopharmaceutical company, with emphasis on separation of the research and development processes. We employ Amgen Inc. as an example of an independent biologic company. We measured the research process technology in terms of patents on underlying core technology, and the development process in terms of patents concerning final product manufacturing or marketing. Using regression analysis and case study method, the results offer three implications that contrast with previous results from chemical synthesis pharmaceutical companies: (i) Economies of scale may exist in both research and development processes; (ii) Persistency is more markedly seen in the development process than in the research process; (iii) Research and development processes tends to diverge. The results are compatible with forecasts based on contingency theory.