Going Virtual in the European Biopharmaceutical Industry: Conductors and Oxpeckers Make It

In the sector of biopharmaceuticals, the dominant business model remains the one of big pharmas: the vertical integration. However we currently observe in the European biotechnology industry the emergence of new business models. This article studies in particular the cases of an orchestra firm and a repurposing firm, both virtual all along the value chain of drugs. It shows that being virtual is possible in the European biopharmaceutical industry. Small virtual firms are able to play the role of hub firms in networks. These organizations, despite their small size and limited funding, manage to build networks with academics and industrials, long-run partnerships, and, icing on the cake: the drug development cost should be much lower than big pharmas’.