Novartis and the Innovator's Dilemma

Novartis' most important new drug candidate, the innovative irritable bowel syndrome drug tegaserod, has been rejected by both European and US regulatory agencies. But while it and other drug firms may blame regulatory groups for becoming too risk averse, or for worrying about the costs of drug treatment, it's just as likely a problem of innovation. The agencies know how to deal with me-too drugs--it's the breakthroughs that are problematic.