Innovaro (NYSE Amex: INV), a comprehensive innovation solution company, and The wRatings Corporation, an independent stock research firm, today announced the results of their quarterly Strategos/wRatings Innovation Index, with the focus of this issue on the pharmaceutical and medical device industry. The study was conducted as a collaborative effort between Innovaro Strategos, a strategic services business of Innovaro, and The wRatings Corporation.

This quarter’s results show the pharmaceutical and medical device industry lags other industries in innovation. This finding is the latest and perhaps most compelling evidence for the demise of the industry’s prevailing blockbuster drug business model.

The biggest investors in research and development, pharmaceutical and medical device companies have not been recognized for innovation. Compared with recent analyses of innovation performance of food & beverage and consumer electronics companies, the industry performed poorly. The average index scores of the top 10 performers is 46 (out of 100), whereas the averages of the top 10 for food & beverage and consumer electronic industries are 76 and 84, respectively.

The Blockbuster Drug Business Model Is Being Challenged

A review of top pharmaceutical and medical device companies shows a collection of companies that have developed and continue to develop wondrous drugs and medical devices, saving and improving the quality of millions of lives. Developments include treatments for HIV, heart failure, hepatitis C, Alzheimer's, Huntington's, cancer and other complex medical conditions. However, as demonstrated by our analysis and echoed by the CBO report indicting the industry has substantially lower R&D productivity than other R&D intensive industries 1, indiscriminately pouring resources into R&D may not be the best route for optimizing shareholder returns.

“Innovation is more than invention,” states Peter Skarzynski, Senior Managing Director of Innovaro Strategos and author of Innovation to the Core (HBSP, 2008). “As the industry faces seismic changes caused by new regulations, demographic shifts, and consumerism, companies that can successfully challenge industry orthodoxies and innovate at the level of the business model have the best chance of thriving.”

“The blockbuster drug model has worked well for pharmaceutical and medical device companies and their investors,” explains Gary A. Williams, CEO and Founder of wRatings. “Going forward, it’s becoming clearer that they will need to apply their creative energy to developing revolutionary business models in addition to inventing revolutionary drugs and devices in order to improve their ranks in innovation.”

101 companies were included in this edition of the Strategos/wRatings Innovation Index. All companies received an Innovation Index rating, with 100 equaling the most innovative.

Rank   Company   Ticker   Strategos/wRatings Innovation Index
1 Vertex Pharmaceuticals, Inc. NASDAQ: VRTX 51.96
2 Acorda Therapeutics, Inc. NASDAQ: ACOR 51.22
3 Medivation, Inc. NASDAQ: MDVN 48.25
4 Abraxis BioScience, Inc. NASDAQ: ABII 48.10
5 Auxilium Pharmaceuticals, Inc. NASDAQ: AUXL 45.90
6 ev3, Inc. NASDAQ: EVVV 43.42
7 Isis Pharmaceuticals, Inc. NASDAQ: ISIS 43.33
8 Watson Pharmaceuticals, Inc. NYSE: WPI 42.63
9 Novartis AG NYSE: NVS 42.48
10 Perrigo Co. NASDAQ: PRGO 42.34
11 Teva Pharmaceutical Industries Ltd. NASDAQ: TEVA 42.33
12 Abbott Laboratories NYSE: ABT 42.31
13 St. Jude Medical, Inc. NYSE: STJ 42.31
14 Cephalon, Inc. NASDAQ: CEPH 42.11
15 Edwards Lifesciences Corporation NYSE: EW 42.11
16 Covidien Plc. NYSE: COV 42.01
17 Becton, Dickinson and Co. NYSE: BDX 42.01
18 Novo Nordisk A/S NYSE: NVO 42.00
19 Glaxosmithkline Plc. NYSE: GSK 41.85
20 Inverness Medical Innovations, Inc. NYSE: IMA 41.82

The report and full details of the methodology is available at,, and Detailed ranking and score data are available to wRatings subscribers.

About Innovaro ®

UTEK Corporation, doing business as Innovaro ®, is a comprehensive end-to-end innovation solution provider. With fully scalable solutions, whether for a global 1000 company or small R&D lab or university scientist, we help our clients create breakthrough innovation, realize latent value in their IP and accelerate their innovations to market. Leading companies trust us to create profitable growth, new revenue streams, enduring capabilities and lasting value through innovation. – NYSE Amex:

About wRatings Corporation

The wRatings Corporation is an independent stock research firm based in metro Washington, DC. The company was founded by Harvard Business Review author and research expert, Gary A. Williams. He and his team continually study consumer and executive buying behavior to project the future earnings performance of companies. Since 1999, their original set of leading indicators helps investors, corporations and consultants improve their performance by using a common framework to measure the competitive strength of companies. For more information, visit

Forward-Looking Statements

Certain matters discussed in this press release are “forward-looking statements.” These forward looking statements can generally be identified as such because the context of the statement will include words such as “expects,” “should,” “believes,” “anticipates” or words of similar import. Certain factors could cause actual results to differ materially from those projected in these forward looking statements and these factors are identified from time to time in our filings with the Securities and Exchange Commission. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This press release is available on our website

1 “Research and Development in the Pharmaceutical Industry”, US Congressional Budget Office, 2006

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