Reducing Pain for Patients and Dealmakers

Pain management continues to face the dual hurdles of abuse of the most efficacious (opiod based) therapies and the difficulties of developing and commercialising new treatments.

Opportunities in Emerging Markets

Emerging Markets (EMs) are increasingly a key part of the growth strategy of many life science/healthcare companies; the vast majority of healthcare spend growth in pharmaceuticals, medical devices and equipment will be in EMs over the next decade.

Key Drivers of Change in the Global Pharmaceutical Manufacturing Industry

Policy-driven changes in healthcare spending and the growing significance of generic competition are acting in tandem to force pharmaceutical companies to adopt more cost-effective manufacturing strategies resulting in an upsurge in the level of M&A activity in the industry as drugmakers consolidate to reduce costs, diversify product portfolios and expand geographic footprints.

Competitive Deal Activity Profiling (CDAP©)

Deal-making is one of the key strategies employed by pharma companies to fuel growth opportunities. On a spectrum that ranges from intramural organic growth to extramural outright acquisitions, pharma deal-making occupies an intermediate position. One can easily argue that analogous to semi-active investment, this approach should yield highest return for the company as well as its investors on a risk-normalised basis.

Options: Is the Bio/Pharma Industry Becoming More Risk Averse?

In deal-making, options have long been considered a useful vehicle to carry uncertainty through to a point of resolution, or at least to a position of more understandable risk. Many very early stage players prefer the use of options to allow partners an opportunity to uncover value rather than undersell or worse allow good potential to gather dust for lack of resource. Would-be licensees see options as a lower risk / lower cost way of securing assets, seeing the risk reward balance falling in favour of watchful waiting. The pharmaceutical pipeline is a risky environment.

Co-promotion Deals - Panacea or Poison Pill?

The incidence of co-promotion components in biotechnology/pharmaceutical licensing deals for development products has grown steadily since 1996 according to data from PharmaDeals© V4. In 1996 just 6% of licensing deals retained co-promotion rights or options for licensors, to date in 2010 the frequency is double that (12%). We were interested to uncover if these agreements converted into commercial realities and if so did they turn out to be mutual successes for the concerned parties.

Pharmaceutical Royalties in Licensing Deals: No Place for the 25% Rule of Thumb

The 25% rule of thumb is often quoted in the context of licensing deals royalty rates and in particular when deriving an appropriate rate of income due to a licensor for an innovative intellectual property asset. We have set out to conduct an in-depth analysis of historic market data from the pharmaceutical industry going back over ten years to check on the validity of this concept and found little if any evidence of its use, appropriateness or relevance.

Trends in the World Small Molecule API Manufacturing M&A Market

The pharmaceutical small molecule API manufacturing industry is now experiencing a period of rapid change. This change is being driven by factors such as the changing nature of the drugs being made, expiry of patents covering the top-selling pharmaceuticals, the growth of the API manufacturing industry in India, China and Asia, shrinking margins causing downward pressure on pricing and the drive by governments to cut spending on drugs. This paper takes a look at how these trends are helping shape mergers and acquisitions (M&A) activity within this dynamic sector.

The Strategic Importance of Biomarkers to the Pharmaceutical Industry

In the last few years, pharmaceutical companies have become increasingly interested in biomarkers and their incorporation into company drug development programmes and use as companion tests for targeted therapeutics. Identifying patients that will benefit from a drug and eliminating those that will not is increasingly important.

Understanding Headline Deal Values A PharmaVentures Guide to the Interpretation of Deal Terms and Terminology

Deal making is the lifeblood of the pharmaceutical sector. In- and out-licensing and other types of agreements are key mechanisms by which intellectual property (IP) of innovative products and technologies is transferred between companies for achievement of development and commercialisation objectives. It is vital that companies execute good deals as this underpins their future profitability, drives share price and demonstrates management competency.