Chugai Pharmaceutical is said to be facing a growing grip of “Too big to grow.” With rapidly growing Chinese companies gaining ground, the view has emerged that proprietary technology alone will not be enough to compete going forward. The company is pursuing a policy of strengthening its use of external drug-discovery technologies.
As Chinese companies rapidly close the gap, an era is approaching in which maintaining long-term competitiveness through proprietary technology alone will become difficult. Chugai Pharmaceutical is under increasing pressure to create its next blockbuster drug and is being forced to transform its drug-discovery structure.
The company announced a policy of simultaneously discontinuing development of 5 new-drug candidates and indicated that it would strengthen its framework for incorporating external drug-discovery technologies. This is expected to accelerate the shift from an internally focused strategy toward one centered on external collaboration.
While drawing on its strength in refining proprietary technologies, the company is redesigning what to abandon, what to develop and what to bring in from outside. As competitive pressure from Chinese companies intensifies, it is seeking new ways to win through organisational management and research and development.