The Pharma & Biotech market has generated very attractive returns for many investors, but at the same time has produced losses to other investors. The sector contains a large number of very-high risk companies, many of which are founded on weak foundations and pursuing projects that are unlikely to either reach the market or to be seen as attractive opportunities by big pharma companies for commercialisation. The professional large investors recently focus much more on mature companies with products and a pipeline.

Small, private companies may be able to progress development of their compounds or technologies up to a point, but are very unlikely to be able to commercialise pharmaceutical products on their own on a worldwide basis, as they will not be able to set up the infrastructure for marketing and distribution. As a result, the vast majority of biotech companies will need corporate deals with pharma companies that have the means to commercialise on a large scale and around the world.