The Novartis Institutes for Biomedical Research (NIBR), once hailed as a "Bell Labs" for biotech, achieved remarkable success in drug discovery before undergoing a strategic transformation. Biotech strategist and writer Alex Kesin recently highlighted this journey, stating in a social media post, "People often say biotech never had its own 'Bell Labs,' but it actually did: the Novartis Institutes for Biomedical Research." His analysis delves into NIBR's unique approach, its period of significant breakthroughs, and the market forces that ultimately led to a re-evaluation of its model.
Under the leadership of Mark Fishman, who was hired in 2002, NIBR defied conventional pharmaceutical management by prioritizing curiosity-driven research. During Fishman's fourteen-year tenure, an impressive 65 percent of Novartis's new drug approvals originated from internal development, a feat considered nearly impossible by many in the industry. This success was partly attributed to a bold move by then-CEO Daniel Vasella, who relocated Novartis's global research headquarters from Basel, Switzerland, to Cambridge, Massachusetts, to immerse the institute in a richer biotech ecosystem.
Despite its scientific achievements, Novartis began to dismantle the NIBR model in 2016. The shift culminated in late 2022 when Fiona Marshall took over, symbolically renaming the entity from "Novartis Institutes of Biomedical Research" (plural) to "Novartis Biomedical Research" (singular). This linguistic change signaled a move away from the autonomous, institute-based structure towards a more integrated, multidisciplinary team approach.
The strategic pivot reflects broader industry trends where internal R&D models face intense scrutiny amid pressures for efficiency and external partnerships. Novartis, a Swiss multinational pharmaceutical corporation and one of the world's largest, continues to invest in research and development, with its Biomedical Research division now focusing on uncovering insights into disease origins to drive drug discovery and early development. The company aims for durable treatments, leveraging programs in CAR T, siRNA, and radioligand therapy.