Large Pharma companies have become heavily dependant upon
alliances and in-licensing to gain access to technologies/new
molecular entities from Biopharma. This reliance has
strengthened Biopharma’s bargaining position, and is reflected
in negotiation tactics which aim to expand their role beyond
product discovery and development towards an active
participation in the the future of their products. This is
emphasized by the growing complexity of licensing deals, as
Biopharma attempts to secure marketing and commercialization
rights within partnership deals.
Furthermore, recent increases in internal Biopharma
consolidation are an indicator of the ability of
well-established Biopharma companies to effectively compete
against traditional big Pharma.
‘Evolving Trends in Biopharmaceutical Licensing’ is a report
published by Business Insights that provides a detailed analysis
of licensing strategies in the biopharmaceutical industry over
the 2001-08 period. This report examines the growth of the
biopharmaceutical industry, deal-making trend data, drivers and
challenges facing biopharmaceutical licensing, and profiles of
biopharmaceutical licensing among leading companies. The future
prospects of the industry are assessed and the potential impact
of political/regulatory factors upon licensing and alliances is
identified. This report also investigates the influence of the
recent upsurge in M&A activity and provides recommendations on
the strategies that can sustain future growth.
Key Findings
-Several top-ranked Biopharma companies have matched the
consistent sales growth of major traditional pharma companies. A
key component of this success has been the increasing reliance
of big Pharma to improve R&D productivity and rejuvenate sales
of marketed portfolios through licensing and partnership deals.
-Big Pharma has been acquiring Biopharma companies at an
increasing rate, resulting in this becoming the fastest-growing
M&A sector in 2008 with deal values up 87%. Intense competition
and financial uncertainty has also prompted a surge in biopharma
consolidation, with 52 biopharma/biopharma deals in 2007.
-Considerable potential for Biopharma licensing deals still
exists, particularly within the OAD class of drugs and
non-invasive insulin drug delivery technologies.
-The total deal size of early-stage alliances with biopharma
has increased six-fold, with total deal values in 2007 estimated
at $18bn. This has been driven by the relatively lower costs of
discovery and lead development, despite the higher risk of
failure.
-Co-development/co-promotion deals accounted for 30% of
licensing deals over 2006-07. Licensing deals will continue to
become more complex due to biopharma’s desire to remain involved
in their product lifecycle beyond the stages of discovery and
development
Use this report to...
- Examine the licensing landscape of the biopharma
industry with this report’s analysis of Biopharma and Pharma
licensing and alliance activity and an examination of
specific approaches utilized by both sectors.
- Discover the drivers and challenges facing Biopharma
licensing, understand how Biopharma companies are preparing
to exploit new opportunities and assess deal-making trends
across clinical trials phases and key therapeutic areas.
- Evaluate the strategies of leading companies involved in
biopharmaceutical licensing with this report’s analysis of
deal activities amongst leading players and identify the
changing dynamics of Biopharma/Pharma partnerships.
- Assess the future prospects of the Biopharma industry
and how current market and political/regulatory factors will
impact the dynamics of licensing and alliances, as well as
potential strategies for sustaining growth.
Explore issues including...
Biopharmas reduced reliance on Pharma. Biopharma is sustaining
its efforts to increase its role outside of product
development/discovery to become actively engaged in the future
of their products. As such, it is becoming increasingly
difficult to differentiate big Pharma from major Biopharma
companies.
Optimizing revenue potential. Biopharma are increasingly
targeting high value therapy areas, such as oncology and
inflammatory disease, bringing them into direct competition with
major Pharma.
Future competitive strategies. With licensing deals
increasing in value and complexity, Biopharma companies are
looking to increase their involvement by forming long-term,
partnership-based relationships. This active engagement in
licensing deals will typically involve the negotiation of equity
investment and the co-promotion and co-marketing of a drug that
allows Biopharma to generate additional downstream revenues.
Drug development potential. The emergence of several new
Biopharma companies with innovative technology platforms has
created immense potential for intra-Biopharma licensing trends
to continue developing novel drugs that can successfully
differentiate themselves within the marketplace.
Discover...
- How will the increasing competition for attractive
Biopharma licensing candidates affect deal terms and values?
- How can Biopharma companies improve their licensing
strategies to ensure future growth?
- What have been the major trends in licensing agreements
between Biopharma and Pharma over 2001-08?
- Which strategies have Biopharma used to reduce their
reliance on Pharma?
- How has the value, volume and competition for Biopharma
licensing deals changed over 2001-08?
- What have been the strategies of successful Biopharma
and Pharma deal-makers?
- Why are Biopharma and Pharma increasingly adopting M&A
strategies instead of entering into licensing agreements?
