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Overcoming the obstacles in the pharma/biotech industry: 2008 update
Ann I Graul1, Laura Revel, Esmeralda Rosa
1ann.graul@thomsonreuters.com
Drug News & Perspectives
|February 12, 2009
Summary
The pharmaceutical industry faces declining innovation and patent expirations. Companies are strategically acquiring, licensing, and collaborating to replenish drug pipelines.
Area of Science:
- Pharmaceutical industry
- Biotechnology
- Drug development
Background:
- Patent expirations on blockbuster drugs are reducing revenue streams.
- Declining innovation presents a significant challenge to the pharmaceutical sector.
- The need for novel therapeutics is increasing.
Purpose of the Study:
- To analyze the strategic shifts in pharmaceutical and biotechnology research and development.
- To understand how companies are addressing pipeline gaps caused by patent cliffs.
- To investigate the role of external collaborations and acquisitions in R&D strategy.
Main Methods:
- Review of industry reports and financial statements.
- Analysis of merger and acquisition (M&A) trends in the pharma/biotech sector.
- Examination of licensing agreements and research partnerships.
Main Results:
- Pharmaceutical and biotech companies are increasingly relying on external sources for innovation.
- Acquisitions and licensing deals are primary strategies to acquire new drug candidates.
- Research collaborations are being utilized to share risk and access specialized expertise.
Conclusions:
- The industry is undergoing a significant transformation in R&D strategy.
- External innovation sourcing is crucial for maintaining competitive product pipelines.
- A proactive approach to pipeline management is essential for long-term success.
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