Partnering or licensing may happen between pharmaceutical companies for the benefit of improving commercial capability, exploiting different field of applications, acquiring marketing and distribution or manufacturing capabilities.
Pharmaceutical industry is utilizing the benefits of partnering throughout the process. Research and development are outsourced to Contract Research Organizations (CRO) as it requires expertise and time investment. CROs also provide unbiased assessments. External service providers are sought as partners to outsource product manufacturing for the benefit of cost involved and avoid the perplexity of regulations. In addition, most of the pharmaceutical manufacturers prefer to outsource their distribution process for the purpose of convenience and cost effectiveness.
Partnership marketing and strategic partnership are also considered important in the pharmaceutical industry, since these minimize competition while leveraging the complementary strengths of the partners. Partnership marketing is a collaboration of two or more companies to leverage each other’s customer base. This helps to increase customer acquisition, product distribution and brand awareness. Strategic partnership brings two or more organizations to share their resources in order to speed up the development process of lifesaving drugs.
There is a trend of big pharmaceuticals acquiring small bio-research companies in order to gain its research and development infrastructure as well as expertise. Another arising trend is alliance between academic institutions or universities and big pharmaceutical companies to fulfil their individual goals through research. However, alignment of their individual goal can be a challenge as a pharmaceutical company aims to gain access to a molecule while an academic institution only aims for information gain. Consequently, partnerships between academic institutes and pharma companies can cause some intellectual property related concerns.
As there has been a rise in competition in industry for drug licensing deals and M&A, it can inflate the cost of these deals and distort the balance of risk, value and return. Hence, companies should be more vigilant in their selection process.
ASDReport.com has an extensive repository of reports on partnering / licensing. The reports cover deal trends, partnering terms and conditions related to various drugs and overall pharmaceutical industry like, biotech partnering, therapeutic partnering, and much more.