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What Can We Learn From Related Industries?

Moderator: Scott Sarazen
Andrew Parece Tamsin S. Randlett Stephen M. Sammut: August 12, 2004; Running Time: 44:41

About the Lecture

About the Lecture

In some ways, the pharmaceutical industry is unique from other industries, its upfront R&D costs, for instance are extremely high. But these panelists see some commonalities with other business sectors, and offer observations and counsel to drug manufacturers. Andrew Parece focuses on the trade of high tech goods, such as software, digital cameras and DVDs. There are difficulties controlling the free flow of these goods, and their prices, across borders—a challenge the drug industry also confronts today. Parece suggests that pharma companies “leverage their competitive advantage…to differentiate products, and turn offerings into products and services such as patient assistance and education, and disease management.” Tamsin Randlett of Gap, Inc. deals more with issues on the manufacturing end. The Gap outsources clothing production to companies in parts of the world where wage and labor standards lag. To respond to concerns about equity and human rights, Randlett partners with international labor organizations and NGOs. She suggests pharmaceutical industries similarly “leverage world health organizations…to bring greater credibility to your efforts” and sit down with politicians, even those opposed to industry positions. Stephen Sammut’s venture capital group invests in the biosecurity business. Just as in drug manufacturing, biosecurity involves risky and expensive R&D, licensing and liability questions, and unpredictable market size. Since “northern hemisphere concerns about biosecurity are the daily disease burden of many countries in the southern hemisphere,” says Sammut, one answer to the pricing problem may be creating drugs useful for both markets simultaneously.

Lecture Details

Location: Wong Auditorium

About the Speakers

Moderator: Scott Sarazen

Senior Vice President, Life Sciences, MassDevelopment

Scott Sarazen's primary responsibility at MassDevelopment involves expanding the biotechnology, pharmaceutical and medical device sectors in Massachusetts. Sarazen has more than 15 years experience in the planning, development, design and construction of biotech and pharmaceutical facilities. Prior to joining MassDevelopment, Sarazen held the position of Director of Facilities, Master Planning and Development for Genzyme Corporation. This role included both physical plant and product capacity planning. Sarazen has a B.S. in Engineering from Worcester Polytechnic Institute and a M.S. in Management from Lesley University.

Andrew Parece

Vice President, Analysis Group/Economics Analysis Group, Inc.

Tamsin S. Randlett

Senior Director, Government Affairs, Gap Inc.

Stephen M. Sammut

Venture Partner, Burrill & Company

Moderator

Scott Sarazen

MassDevelopment web site

Speakers

About the Host

About the Host

MIT Sloan School of Management

The MIT Sloan School of Management, based in Cambridge, Massachusetts, is one of the world’s leading business schools — conducting cutting-edge research and providing management education to top students from more than 60 countries. The School is part of MIT’s rich intellectual tradition of education and research.

MIT Sloan began in 1914 as engineering administration curriculum in the MIT Department of Economics and Statistics. The scope and depth of this educational focus have grown steadily in response to advances in the theory and practice of management to today’s broad-based management school.

A program offering a master’s degree in management was established in 1925. The world’s first university-based executive education program — the MIT Sloan Fellows — was created in 1931 under the sponsorship of Alfred P. Sloan, Jr., an 1895 MIT graduate who was then chairman of General Motors. A MIT Sloan Foundation grant established the MIT School of Industrial Management in 1952 with a charge of educating the “ideal manager.”