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Over the First Six Months of 2005, Biotechnology Licensing Activity Grew By 30% to Account for Approximately 68% of All Licensing Agreements Signed Across the Biopharmaceutical Industry

Posted on: Friday, 3 February 2006, 09:00 CST

Research and Markets (http://www.researchandmarkets.com/reports/c32265) has announced the addition of Biotechnology Licensing: How Has the Balance of Power Shifted? to their offering.

Historically, the rules of engagement for biotechnology licensing were very simple: biotechnology companies conducted discovery and early-stage R&D and then handed their projects to integrated pharmaceutical partners for late-stage development and marketing. A casual glance at recent agreements, however, suggests a new model, wherein the outlicensing biotechnology company retains significant bargaining power in negotiating co-commercialization terms for late-stage development compounds.

In this report, Decision Resources investigate whether recent licensing deals mark a shift in industry dynamics whereby biotechnology companies will retain greater ownership of their products and pharmaceutical companies will compete for commercial interests in those products. Through detailed commentary from senior licensing executives across the industry, we explore how such a shift will affect biotechnology licensing from the perspective of both outlicensers and inlicensers, identify the strategies of likely winners and losers in future biotechnology licensing deals, and outline criteria that will enable companies to succeed in this space.

Business Implications

-- Licensing deals involving biotechnology companies are increasing in number and value, closely mirroring trends in the financing of the industry as a whole. Over the first six months of 2005, biotechnology licensing activity grew by 30% to account for approximately 68% of all licensing agreements signed across the biopharmaceutical industry. A strong biotechnology industry produces more downstream products available for licensing and, as a result, higher deal values.

-- Biotechnology companies are doing more deals than ever with pharmaceutical companies, but deals between biotechnology companies and with academia account for the greatest growth in recent licensing activity, demonstrating the renewed ability of large, well-financed biotechnology companies to act as senior partners in late-stage development, approval, and marketing.

-- Companies have been moving away from straightforward, transactional licensing deals toward relationship-based agreements that include marketing terms for therapeutics. Licensing deals have moved downstream and are increasingly delayed until drugs enter late-stage development. More and more, biotechnology companies are retaining a greater stake in ongoing collaborations and are selecting their partners more carefully.

-- In response to the changing licensing environment, pharmaceutical companies must be more aggressive in hunting out potential licensing opportunities and making earlier contact with potential partners. In agreeing on deals, both parties should move toward a win-win model, in which the strategic objectives of each company are aligned.

Companies mentioned in this report include:

-- Alkermes

-- American BioScience

-- American Pharmaceutical Partners

-- Amgen

-- Amylin Pharmaceuticals

-- Anadys

-- Biomarin Pharmaceutical

-- Biovail

-- Boehringer Ingelheim

-- Bristol-Myers Squibb

-- CancerVax

-- Cephalon

-- Depomed

-- DynPort Vaccine

-- Eli Lilly

-- Eyetech Pharmaceuticals

-- Genentech

-- GlaxoSmithKline

-- Idenix Pharmaceuticals

-- ImClone Systems

-- ISTA Pharmaceuticals

-- Johnson & Johnson

-- Medarex

-- Merck & Co.

-- Millennium Pharmaceuticals

-- Nastech Pharmaeceuticals

-- Neurogen

-- NitroMed

-- Novartis

-- Novo Nordisk

-- Ortho Biotech

-- Pfizer

-- QLT

-- Questcor Pharmaceuticals

-- Regeneron Pharmaceuticals

-- Roche

-- Sanofi Pasteur

-- Sepracor

-- Serono

-- Tularik

-- ZARS

-- ZymoGenetics

For more information visit http://www.researchandmarkets.com/reports/c32265 Decision Resources

Source: Business Wire

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