Peter Kim of Merck shakes up the R&D business: "
The Wall Street Journal (link via Pittsburgh Post-Gazette) recently profiled the efforts of Peter Kim, the new head of Merck Research Laboratories, to shake up the company's traditional R&D operations. In the process, Peter is drawing fire from long-time company employees for opening up the company's vaunted R&D labs to outsiders. In 1999, Merck entered into only 10 outside alliances with pharmaceutical researchers. In the three years since Peter Kim has taken over, Merck Research Labs has signed 141 deals. In 2005, the company reviewed more than 5,000 potential partnership opportunities, and it looks like Merck is slowly but surely opening its kimono to the outside world:
'For decades, Merck & Co.'s research laboratories pioneered many of the world's best-selling drugs, ranging from lifesaving vaccines to treatments for blood pressure, high cholesterol and AIDS. The company's scientists considered themselves the best in the industry -- a pride that often came across as arrogance.
These days, Merck's scientists swallow their pride under research chief Peter Kim, who spent most of his career in academia. Dr. Kim took over amid a string of drug-development failures at Merck and has made it clear he thinks the company's own labs aren't sufficient to replenish its pipeline. He says Merck needs to turn to other companies, both for new drugs and new means of discovering them. 'Merck has outstanding science and scientists -- and it did when I came,' says Dr. Kim. But, 'in some areas, I knew that there were some scientists on the outside who were better.'
Dr. Kim has hired other outsiders for top posts. Staffers have undergone training to improve their interpersonal skills when dealing with outside scientists. Some have reacted with anger to the initiatives and jumped ship... Whether Dr. Kim succeeds will not only sway the fate of an American corporate icon but also serve as a barometer of the pharmaceutical industry's struggle to stay relevant in medical research. Merck's strategy is common in the industry: Many big companies with aging blockbusters have turned to biotech firms and smaller drug makers to refill their pipelines.'
Tags: Merck R&D innovation
[image: Peter Kim]
"(Via Business Innovation 2005.)
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