Listing analysis and research matching pharmaceuticals:
Biopharmaceutical partnering in China
Multinational pharmaceutical companies are increasingly investing in China through alliances and the building of new centres. Much of the investment is to supplement rather than replace the research and development already occurring outside China and is focused on development and processes than be easily codified and regulated.
China's biopharmaceutical patent footprint
Chinese inventors are increasing filing for biotechnology patents with the American USPTO, peaking at 51 patents in 2003. Many of these patents are being filed by inventors based in Beijing, Shanghai and Hong Kong. A large proportion of the biotechnology-related patents are for antibody technology (42%), and a large proportion are being assigned to university institutions.
Reducing alliance risks
Consultants are in business to disagree with each other. Which makes it odd is that they all agree on at least one thing, somewhere around a half of all alliances 'fail'. But are they right? Research by Silico and IBM conducted among 148 senior executives in the biopharmaceutical industry indicates that far fewer of the partnerships which analysts reported as having failed can be regarded as true failures.
The impact of alliances on share prices
It seems that alliances are good for companies, at least their share prices, whether or not the alliance achieves any positive outcomes. This raises two intruiging questions. First, why equity markets look upon alliances and partnerships so favourably in the first place. Second, does the equity market's view of alliances and the premium given to alliances fluctuate over time?
The impact of cultural factors on alliance performance
Intangible factors such as cultural compatibility, an openness to knowledge sharing and to new ideas and a determination to make the partnership work are the most important factors in predicting the outcome of a partnership. These conclusions are based on data collected from 148 executives in biotechnology and pharmaceutical companies.
The key drivers of alliance formation
Two factors, the deal on offer and the scientific expertise on offer, dominate the underlying reasons senior executives in biotechnology and pharmaceutical companies enter a partnership. This conclusion is drawn from data collected in two surveys conducted among senior executives from biotechnology and pharmaceutical companies.
The impact of conditional payment mechanisms on alliance outcomes
Conditional payments are commonly used in biopharmaceutical alliances. Recent research among senior executives in the biopharmaceutical industry by Silico Research and IBM showed that 81% of partnerships were using some form of conditional payment, such as options, milestone and license payments and royalties (n=130). Milestone payments were the most frequently used mechanism with 74% of surveyed partnerships using them. The research showed, however, that conditional payments do not improve the chances of a partnership succeeding.
Life science companies optimistic about 2008
A recent survey by Silico Research has revealed that executives in life science companies are optimistic about the prospects for their industry going into 2008.
