Abstract
Overview
Introduction
Since the financial meltdown, the relationship between Pharma and Biotech has
been turned on its head. Previously, pharma companies had no choice but to
license Biotech drugs at high prices in order to fill their sparse late stage
pipelines.
Scope
- Overview licensing trends up until the credit crisis
- Strategic analysis of biotech' s funding crisis
- Insight into how the biopharma market is expected to change and adapt
- Recommendations and potential financial solutions for biotech
Report Highlights
While Pharma is likely to prefer acquiring biotech targets out right, rather
than navigating the road of complex licensing agreements, Datamonitor expects
that licensing agreements will remain among Pharma and self sufficient biotech
companies. Although snapping up struggling Biotechs through M&A will be a
priority for Pharma.
Biotech companies are tackling their funding crises on two fronts; firstly, by
cutting costs and reducing their high cash-burn rates, and secondly attempting
to access quick cash from external sources. However, this is becoming a tough
task.
The lack of deals on the horizon, Biotech' s funding crisis, and subsequent
loss of confidence in the industry, have all led the market cap of
non-profitable US biotech companies to fall by a third since September 2008.
Reasons to Purchase
- Understand how licensing trends have evolved in recent years, and what
impact the financial crisis has had
- Assess how Pharma and Biotech' s relationship has changed and the
repercussions of this
- Identify cost saving and cash raising strategies in order to weather the
funding crisis
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