Compiled By Tonya Vinas Pharmaceutical/biotechnology partnerships, though poorly understood, will continue to be a vital asset for large drug companies, according to researchers at Cutting Edge Information, a business research company. Cutting Edge, Durham, N.C., recently released the report "Building Pharmaceutical-Biotechnology Partnerships," which features best practices covering 40 deals at pharmaceutical and biotech companies. The report's featured companies include GlaxoSmithKline PLC, Amgen Inc., Bristol-Myers Squibb Co. and Genentech, among others. According to Cutting Edge, the top 10 pharmaceutical companies accounted for 59% of total pharmaceutical sales in 2001, mainly based on "blockbuster" drugs. Of the top 10 blockbuster drugs, 30% of total sales, close to US$12 billion, resulted from alliances between pharmaceutical and biotechnology companies. Cutting Edge's full report costs $4,995, but the company lists a summary of "Five Principles for Success" on its Web site:
- Select partners with the right technology and culture fit.
- Cultivate internal champions to secure partnership growth potential.
- Maintain commercial momentum with clear commitment to the shared product.
- Incorporate partnership into long-term corporate growth strategy.
- Become a "partner of choice" by building partnership skills into a competitive advantage.