Guide To Successful Pharmabiotech Alliance Strategies: Providing A Comprehensive Analysis Of Driving Synergies, Avoiding Failure And Managing Relationships

DUBLIN, Ireland --(Business Wire)-- Research and Markets http://www.researchandmarkets.com/research/3f2fff/successful_pharmab) has announced the addition of the "Successful Pharmabiotech Alliance Strategies: Driving Synergies, Avoiding Failure and Managing Relationships" report to their offering.

Over the past few years, Business Insights has noted that alliances between pharmaceutical ("pharma") and biotechnology ("biotech") companies have become common, with hundreds of relationships currently in place to develop drugs for virtually all of the highest priority conditions. For pharmaceutical companies, this is a direct result of rising imperatives to develop new products, coupled with rapidly escalating R&D costs. While pharmaceutical companies continue to experience patent expirations that reduce revenue, pipelines are shrinking while the average cost of bringing each new drug to market has risen from about $100m in 1990 to nearly $1b in 2008. For biotechs, alliances provide much-needed funding without which many companies would be unable to continue their R&D activities.

‘Successful Pharma-Biotech Alliance Strategies' is a new report published by Business Insights that examines the current landscape for pharma-biotech alliances and provides an in-depth analysis of the underlying factors that can determine their success or failure. Recent major joint ventures, acquistions and licensing deals are evaluated and the latest trends and developments affecting alliance management are assessed. This report also performs a detailed examination of 9 case studies that profile varying approaches to deal structuring and relationship management, in addition to charting the current and future alliance activities of the top ten pharmaceutical companies. Volume and value forecasts for pharma-biotech deals to 2015 are also provided.

Improve the effectiveness of your alliance strategies with this report's detailed examination of the key issues influencing the success of relationships and a case study analysis of major recent alliances...

Some Key Findings From this Report:

"The trend of declining product approvals shows no sign of abating. Approvals in 2005 and 2006 were particularly low and 2007 approvals were even lower. As NME approvals have declined, R&D spending has continued to rise..."

• The quantity of biopharmaceutical licensing alliances has remained steady over the last few years, however their overall value has trebled from $30bn in 2004 to over $90bn in 2007.
• Very few pharma or biotech companies employ consistent, reproducible metrics to analyze performance, despite the importance to both partners when evaluating alliance success.
• The average value of pharma-biotech deals will almost treble by 2015 as pharma companies increasingly focus on gaining exclusive access to high potential technologies via large equity investments.
• Management changes, cultural differences and contrasting expectations are the main preventable reasons for the failure of pharma-biotech relationships. The area of therapeutic focus, stage of alliance initiation and manner of introduction has a negligible effect on overall project outcomes.
• Pharma companies are increasingly establishing in-house alliance management teams whose sole responsibility is to oversee cross-divisional relationships. Recent studies have shown such groups to increase alliance success rates by up to 25%.

Key issues examined in this report...

"Project leaders are day-to-day managers who oversee the details of the scientific and commercialization processes. Alliance leaders provide vision for the alliance within the context of the overall corporate strategy; he or she also has overall responsibility for the relationship and the authority to continue or terminate it..."

• Rising offshore relationships. The increase of cross-continental relationships has created additional difficulties, with partners having to effectively overcome issues of culture, language and time-zones.
• Operational consolidation. Many companies are consolidating their deal-making into one business unit and merging their biotech operations into one division to reduce relationship complexity.
• Joint venture benefits/disadvantages. Joint ventures represent a substantially closer working relationship between participants than licensing deals, however this also leaves them more vulnerable to management and organization problems from within the collaboration.
• Impact of R&D trends. Pharma companies and biotechs continue to pursue complicated and interconnected disease targets which are leading to rapidly escalating R&D costs and fewer drug approvals.
• Biotechnological alliances. In recent years, biotechs have increasingly sought to partner with larger biotechnology companies in an attempt to harness synergies while working within a closer cultural fit.

Key Questions Answered:

"Similarly to companies that consolidate their alliance management within one organization, some pharmaceuticals have restructured to group their entire biologics R&D together. These biologics groups may include acquired companies and technologies, various types of biotech collaborations as well as established in-house biotech R&D programs..."

• Why are pharma-biotech alliances increasing?
• Which therapeutic areas have the highest prevalence of pharma-biotech alliances?
• What strategy is used in approximately 35% of alliances to prevent a breakdown of the relationship?
• Which forms of alliance are most common and why?
• What is the single greatest preventable cause of pharma-biotech alliance failure?
• Which factors have the greatest bearing upon alliance success?
• Which landmark pharma-biotech alliance set the stage for the current deal-making environment?

Top reasons to order your copy today

"Each type of relationship offers advantages and disadvantages, with licensing relationships representing the lowest level of financial commitment from both sponsor and developer, and acquisition representing the greatest. Licensing arrangements are also relatively easy to dismantle, should the technology or relationship prove to be unsatisfactory to either party..."

Benchmark 9 case studies of key alliance management strategies to help you optimize your drug development alliances by identifying successful and unsuccessful approaches across the areas of deal structure, relationship management/monitoring and deal renegotiation.

Identify the factors that are pivotal to the success or failure of alliances by measuring the influence of a host of variables including management structure, therapeutic area focus, partner locations, drug development stage and manner of partner introduction.

Assess the competitive positions of potential pharma/biotech partners with this report's analysis of current and future biotech positions of the top ten pharmaceutical companies and a detailed evaluation of recent major joint ventures, acquisitions and licensing deals.

Understand the future landscape for pharma-biotech alliances with this report's analysis of the latest trends and developments influencing relationship management in addition to deal trends that include volume and value forecasts for pharma-biotech deals to 2015.

Key Topics Covered:

• Pharma and biotech company synergies
• Overview of pharma- biotech alliances
• Why pharma-biotech alliances fail
• Strategies to manage pharmabiotech alliances
• The future of pharma-biotech alliance management
• List of Figures
• List of Tables

Companies Mentioned:

• AstraZeneca
• Bayer
• Eli Lilly
• GlaxoSmithKline
• Johnson & Johnson
• Merck
• Novartis
• Pfizer
• Sanofi-Aventis
• Wyeth

For more information visit http://www.researchandmarkets.com/research/3f2fff/successful_pharmab

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