Fully Integrated Pharmacy Network (FIPNET)
What is a fully integrated pharmacy network (FIPNET)?
A fully integrated pharmacy network (FIPNET) is a business model where companies outsource services at various points in the value chain, including research, development, manufacturing, marketing, and sales. With the FIPNET model, companies maintain oversight and control over the product development process without personally completing each stage. This allows for flexibility and the ability to leverage external expertise.
Other business models, besides the FIPNET model, include:
- Research-intensive/royalty-only pharmaceutical company (RIPCO): Focuses on research and development, licensing products to other companies for commercialization.
- Fully integrated drug discovery & development (FIDDO): Involved in drug discovery and development, but may outsource manufacturing, marketing, and sales.
- No research, development only (NRDO): Concentrates solely on developing drugs, often acquiring early-stage compounds for further development.
- Fully integrated pharmaceutical company (FIPCO): Controls each aspect of the drug development and commercialization process.
- Fully integrated biopharmaceutical company (FIBCO): Similar to FIPCO, but typically focused on biopharmaceuticals, controlling all stages from research to sales.
RIPCO, FIDDO, and NRDO models control specific parts of the drug discovery process, while FIPCO and FIBCO oversee each aspect. In contrast, FIPNET oversees each part of the drug development process but outsources tasks to other companies rather than completing them internally, as FIPCOs and FIBCOs do.
What is the benefit of the FIPNET model?
The FIPNET model allows pharmaceutical companies to oversee each stage of the drug development process, from research to marketing, while outsourcing specific tasks to other companies. This enables them to choose which functions to delegate and select the best partners for each task.
For companies that do not have the capital to operate as a FIPCO or FIBCO, the FIPNET model offers an alternative that allows them to remain involved in the process without the need for extensive resources.