Successful Pharmabiotech Alliance Strategies: Driving synergies, avoiding failure and managing relationships

Published by	Business Insights
Published	September, 2008	Product code	74353
Content info	143 pages
Price	US $ 3835 PDF by E-mail (Single User License) US $ 14382 PDF by E-mail (Global License)

Introduction
Related Reports

Successful Pharmabiotech Alliance Strategies: Driving synergies, avoiding failure and managing relationships published by Business Insights in September, 2008. This report consists of 143 pages and the price starts from US $ 3835.

Introduction

Abstract

In recent years, alliances between pharma and biotech companies have become common, with hundreds of relationships currently in place for drug developments across virtually all high priority conditions. Such alliances are of significant benefit to pharma companies who are aiming to combat the increasing need for new product development and rapidly escalating R&D costs. For biotechs, alliances provide crucial funding that can help to maintain and expand R&D activities. These synergistic benefits have resulted in over 30% of drugs in clinical trials now being a direct product of pharma-biotech alliances. However, poor deal structure and implementation continue to contribute to the failure of almost half of these relationships. ĹSuccessful Pharma-Biotech Alliance Strategiesí 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, acquisitions 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 reportĺs detailed examination of the key issues influencing the success of relationships and a case study analysis of major recent alliances.

Executive summary

Pharma and biotech company synergies
Overview of pharma-biotech alliances
Why pharma-biotech alliances fail
Strategies to manage pharma-biotech alliances
The future of pharma-biotech alliance management

Chapter 1 Pharma and biotech company synergies

Summary
Background
The pharmaceutical industry
- The research and development process
- Resources
- Constraints and pressures
The biotechnology industry
- The research and development process
- Resources
- Constraints and presures
Drug development today
More sophisticated science
More complicated disease targets
Rapidly escalating costs
Declining R&D productivity
Conclusions

Chapter 2 Overview of pharma- biotech alliances

Summary
Introduction
Evolution of major alliances
Genentech
ImClone
MedImmune
Current deal trends
Types of relationships currently undertaken
Licensing
- Significant recent pharma-biotech licensing deals
Joint ventures
- Significant recent pharma-biotech joint ventures
Acquisitions
- Significant recent pharma-biotech acquisitions
Hostile takeovers
Offshore alliances
Japan
China
India
Canada
Number and value of alliances
Key therapeutic areas for pharma-biotech alliances
Conclusions

Chapter 3 Why pharma-biotech alliances fail

Summary
High failure rates
Symptoms of alliance failure
Factors that do not affect alliance success
Main causes of alliance failure
Management changes
Culture
Project organization and expectations
- Alliance goals
- Incentives
- Roles and responsibilities
- Sharing of business processes
- Decision support infrastructure
- Project and alliance leadership
- Harmonization of information technology
- Timelines and budgets
- Alliance expectations
- Other preventable problems
Technology failure
- The drug approval process
- Drug development success rates
- Case study: Alza and Scios
Vulnerability by alliance type
Licensing deals
Joint ventures
Acquisitions
Conclusions

Chapter 4 Strategies to manage pharmabiotech alliances

Summary
Determining alliance success
Performance measurement
Alliance goals versus company goals
Why effective alliance management is crucial
Key alliance management strategies
Deal structure 104
- Case study : Wyeth
- Case study : Novartis
Relationship managing and monitoring
- Case study : Eli Lilly
- Case study : GlaxoSmithKline
- Exploiting synergies across alliances
Biologics consolidation
- Case study: AstraZeneca
- Case study: Novartis
- Case study: Pfizer
Addressing corporate culture
- Case study: WuXi PharmaTech
Leadership continuity
Renegotiation
Third party services
Conclusions

Chapter 5 The future of pharma-biotech alliance management

Summary
Increasing reliance on biotech by Big Pharma
Positions of the leading pharmaceutical companies
- AstraZeneca
- Bayer
- Eli Lilly
- GlaxoSmithKline
- Johnson & Johnson
- Merck
- Novartis
- Pfizer
- Sanofi-Aventis
- Weyth
Deal trends
Number and value
Therapeutic areas
Types of relationships
Offshore relationships
Relationship management trends
Conclusions
Index

List of Figures

Figure 1.1: U.S. NME approvals vs. R&D spend, 1980 - 2007
Figure 1.2: U.S. R&D spend per NME approval by year, 1990 - 2007
Figure 2.1: Comparison of key types of pharma-biotech alliances
Figure 2.2: Volume and value of biolicensing deals, 1997 - 2007
Figure 3.1: Compounds tested by phase of development, 2008
Figure 3.2: Pharma-biotech alliance failure trends by alliance type
Figure 4.1: Pharma, biotech and alliance goals
Figure 4.2: Roles and responsibilities for alliance personnel
Figure 4.3: Biologics consolidation vs. alliance consolidation
Figure 5.1: Volume and value of biolicensing deals, 2005 - 2015 (est.)

List of Tables

Table 1.1: Characteristics of pharmaceutical companies and biotechs, 2008
Table 1.2: Pharma and biotech views of alliances, 2008
Table 1.3: R&D expenditure within the U.S. and abroad by PhRMA members
Table 1.4: U.S. R&D spend per NME approved, 1990 - 2007
Table 2.5: Significant recent pharma-biotech licensing deals
Table 2.6: Significant recent pharma-biotech licensing deals (continued)
Table 2.7: Significant recent pharma-biotech licensing deals (continued)
Table 2.8: Significant recent pharma-biotech licensing deals (continued)
Table 2.9: Significant recent pharma-biotech licensing deals (continued)
Table 2.10: Significant recent pharma-biotech acquisitions
Table 2.11: Significant recent pharma-biotech acquisitions (continued)
Table 2.12: Significant recent pharma-biotech acquisitions (continued)
Table 3.13: Cultural characteristics of pharmaceutical companies and biotechs
Table 4.14: Selected GlaxoSmithKline biotech alliances, 2008
Table 4.15: Capabilities of selected alliance management specialists
Table 5.16: Current and future biotech positions of top 10 pharmaceutical companies, 2008