The number of new alliances has increased ten-fold within a 10 year period (1992-2001)

(PRWEB) June 5, 2004 -- Research and Markets announces the addititon of this new report entitled "The Handbook on Alliances & Deals in Biotech Business" to its offerings.

"The only way to win in this business is to have alliances, both for small companies and large ones." (Executive manager of a large biotech company). The number of new alliances has increased ten-fold within a 10 year period (1992-2001), from approximately 100 per year to close to 1000 per year today. In-licensing are becoming more and more important. Number of drugs that originated in-house has decreased from 80% in the 70th to only 40% in the beginning of 2000. If the pharmaceutical industry increased early deal prices substantially they would have a better chance economically. Several small companies have held back on out-licensing due to poor deal terms. Several evaluations of the relationship between deal value and developmental stage clearly demonstrate an unexpected small difference in values. These factors will drive the need for increased frequency and earlier stage deals.

There is still a large difference between in-licensing behaviors among the larger companies (BMS 53% and Eli Lilly 19%, year 2000). Over 10% of the approved in-licensed drugs have achieved blockbuster status whereas "only" approximately 5% of the internal drugs do so. According to estimations made by Wood Mackenzie's licensing deals will up to 2010 grow to become the largest driver for big pharmaceutical companies. And expectations that almost 50% of revenues in major pharma will emerge from licensed compounds by 2005-2010. New collaborations are as likely to be made between two (small-large or large-large) biotechnology companies as they are between a biotechnology company and a pharmaceutical giant.

In the "Handbook on Alliances & Deals in Biotech Business" important structural issues are described for optimizing deal value. Any management executive can use this strategic document as a guide of assistance in their tedious out-licensing efforts. Of outmost importance is the structure and time-line to work with. The most important issues to consider are discussed.

All biotechnology companies want to discover and develop treatments with a blockbuster potential. In addition, they want to be in charge of their products or services in the moneymaking process and to obtain every bit of revenue their product can convey. Realistically, almost no biotech company is ever going to have enough capital to achieve all of the steps needed. At the same time large pharmaceutical companies are more and more realizing the possibilities of future growth in revenues in the oncology field. Most of them do not have a strong pipeline and as well lack technology platforms, which force them to cover their needs by in-licensing or acquisitions. The licensing situation is changing. A stronger demand for earlier stage projects has become a reality since there is a dry for late stage projects. Doing business in the biotechnology arena changes constantly. And since many biotechnology companies must explore the possibilities for out-licensing product rights in the early hours in order to gain funds to maintain their existence or to move their pipeline products closer to commercialization they are dependent on constantly scanning the business climate. Most small company executives are more concerned about the time to sign the collaboration with a larger pharmaceutical company, to commercialize the product, than whom they are partnering with. Smaller pharmaceutical companies have introduced fresh technologies and new classes of drugs. The pharmaceutical companies are hungry for new products so, it is not difficult to come across various interesting associates. Knowledge of progress in drug discovery technologies and clinical trial design are as well of immense importance for keeping a company in the forefront, providing competitive advantage.

The report includes:
- Description of the partnering process
- Deal and partner strategies
- Guide for increasing value on your pipeline
- Identify your risk of missing good leads
- Checkpoints for out-licensing
- Real case scenarios

For a complete index of this report click on http://www.researchandmarkets.com/reports/74830

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