Singapore’s biotech strategy will benefit from collective, not competitive, thinking

IN AN interview with private-equity investor David Rubenstein, chief executive officer of Novartis Dr Vasant Narasimhan spoke about the potential and possibilities of pharmaceuticals in a fiercely competitive industry.

Rubenstein questioned Dr Narasimhan on whether constant drug patent expiry and the need to generate new portfolio of drugs is a good way to make a business. Dr Narasimhan acknowledged the “constant treadmill” and the value of a company’s replacement power, which requires strong research and development capabilities, as well as long-term thinking.

Few industries in the world are subject to such clockwork-style competitive advantage erosion, where businesses know the exact year in which generic drug sales will erode their revenues.