Rising R&D Costs Cause Pharmaceutical Industry To Change- Social Source

For my white paper, I will be discussing how rising R&D costs in the pharmaceutical industry has caused many companies to radically alter their organizational structures. In the past 50 years, the pharmaceutical industry has grown tremendously. Numerous companies have released game-changing “blockbuster” drugs that are protected by patents and bring in a majority of the company’s wealth. Although this is great, pharmaceutical companies now face two challenges: 1.) Increasing R&D costs, and 2.) Loss of patent protection on “blockbusters.” By the end of my paper, I will create a conclusion that determines whether or not various organizational restructuring strategies are sustainable.

For my social sources, I will utilize a variety of scholarly writings that both address the R&D cost crisis and how companies are altering their organizational structures to enhance productivity. Utilizing scholarly articles will allow me to read about various academic views on the R&D issue. It will also help me to better form my own opinion about how effective reorganizational strategies are. So far, I have three academic articles regarding the R&D crisis.


The Evolution of the Pharmaceutical Industry Over the Past 50 Years: A Personal Reflection 

The Changing Structure of the Pharmaceutical Industry

Pharmaceutical R&D: An Organizational Design Approach to Enhancing Productivity


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