Business Development and Licensing Journal:

Issue number 12

On the back of the global economic malaise, governments are looking to their healthcare budgets and electing to curb the most manageable part – the drugs budget. This is in most cases being passed back up the supply chain to the pharma companies.

Countries which have announced cutbacks include France, with $122 million of price cuts out of its total planned $735 million reduction. This follows the decree from the Greek authorities to lower drug prices by about 25%. There are also proposed price reforms in Germany, and cuts in Spain.

But not all countries are following this path. The Italian government plans to use a range of measures, for example incentivising doctors to reduce prescription volumes and prescribe generic alternatives. This will be accompanied by a 12.5% price cut in generics and instigating a centralised system of competitive bidding from 2011, only allowing reimbursement of the least expensive medicine.

Price cuts will have a significant impact on pharma companies’ European sales and profits. Lower prices mean lower forecasts and revenues, which could lead to lower deal values. To some extent this is evident in the increasing number of option deals being concluded, managing the risk and deferring investment until outcomes are clearer.

With the Business Development & Licensing Journal in its fifth year of publication and reaching issue 12, we felt it was time for a facelift. The new-style journal includes an article from Hans Egly, the PLCD president, and we hope that this will be the first of many in a European language other than English. This recognises the international range of our readership and we will in all such cases include an English summary to allow broad access.

Sharon Finch

Editor

Contents:

Co-marketing – a Successful cooperation model
Hans-Joachim Egly, UCB Group/Scharz Pharma

The launch of a second brand much later than the original product can boost the growth dynamics of a brand. A single message backed by two sources creates more credibility. It also adds visibility and representation of the molecule and meets the demand for choice.

Trend in Pharmaceutical Dealmaking
Sarah Terry, MedTRACK

The number of deals is falling, but they are getting increasingly complex, happening at a later stage, and the number of therapeutic categories is broadening. Cancer remains the most popular category and, across all indications, biologics deals are rising.

Plan B : When Negotiations Fail
Andrew Gottschalk, Group AG

The negotiating establishment could be directing us into a cul-de-sac, where we assume that plan A will be sufficient. Many, if not most, negotiation fail: we need a plan B. So how do we go about putting one together?

Follow-on Biologics: How to Develop a Competitive Advantage
Evert Kueppers, Mazor Consult

The follow-on biologics market is predicted to see an increase in competition from both expected and unexpected players. While the biosimilars segment is becoming established, some players are aiming for the potentially higher-priced biobetters. Several big pharmas want to leverage in-house expertise, cashing in on acquired technologies to develop bionovels.

Finding New Products to License
Asa Cox, Generic Licensing

There are many ways to get advice on best practice for product selection, deal structure, contract negotiation and partnerships, but little on where to find the products to license and partners to do business with in the first place. Fortunately, technology can help.

Book Review
Roger Davies, Redpharma

How to fail in one of the world’s most exciting and fast-moving industrial sectors – biotechnology, and the role of venture capital.

Deal Watch
Bridget Lacey, Medius Associates

March, April and early May 2010 saw fewer deals, but big Pharma is playing an increasing role as it faces the impending patent cliff in 2011. The deals focus on rare or niche diseases, dynamic deal structures and a continued appetite for RNA targeted (antisense) therapeutics.

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