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Fully Integrated Biopharmaceutical Company (FIBCO) Model

What is the fully integrated biopharmaceutical company (FIBCO) model? 

A fully integrated biopharmaceutical company (FIBCO) is a model where biopharmaceutical companies are involved in all stages of the drug discovery and development process, including research, development, manufacturing, marketing, and sales.  

The FIBCO model is appealing to many biopharma firms as it allows them to control each integral part of the drug discovery process. However, it requires substantial capital investment, making it unviable for many smaller companies.

Other business models in the biopharmaceutical industry include:

  • Research-intensive/royalty-only pharmaceutical company (RIPCO): Focuses on research and development, licensing out products for commercialization, earning royalties instead of handling marketing and sales.
  • Fully integrated drug discovery & development (FIDDO): Involved in drug discovery and development but may outsource manufacturing, marketing, and sales.
  • No research, development only (NRDO): Focuses solely on drug development, often acquiring early-stage compounds for further development.
  • Fully integrated pharmacy network (FIPNET): Extends the FIBCO model to include control over clinical services along with all areas of the drug development process.

While RIPCO, FIDDO, and NRDO models control specific parts of the drug discovery process, they do not manage the entire process as FIBCO does. FIPNET takes integration a step further by incorporating clinical services.  

What is the benefit of the fully integrated biopharmaceutical company (FIBCO) model? 

The FIBCO model allows biopharmaceutical companies to control each stage of the drug discovery and development process, from research and development to marketing and sales. This control can improve cash flow, reinforce the product’s brand, and provide a stronger global presence. Additionally, the integration across all stages can lead to efficiencies and synergies that improve overall operational effectiveness and strategic flexibility.