The Pharma and Biotech Sector
There is an underlying need for alliances on the part of “Big Pharma” in order to fuel growth. This is through access to new products and technologies. Optimising drug development and commercialisation certainly appears to go from strength to strength. This is driving hundreds of deals every year worldwide between pharma and biotech companies. At the same time, the total value of alliances has seen a growth explosion to over $100 billion per year in recent years.
Whereas the need for partnerships in general has become the norm in the industry, it still is a very specialised field, where people and expertise are crucial for success and internal company resources are often in need of additional support.
Small private companies may be able to progress the development of their compounds or technologies up to a point, but are normally unable to convert these into commercialised pharmaceutical products, on their own and on a worldwide basis, as they are not capable of setting up the infrastructure for marketing and distribution. The result is that the vast majority of biotech companies will be compelled to enter into corporate deals with pharma companies that have the means to commercialise on a large and global scale.
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