Whenever we look at the Pharma market these days, we’re always looking at a market that’s moving a lot and developing in new directions, especially and ever since the expiration of the blockbuster drug patents. There are changing business models, revenue streams dramatically change and new (and often less expensive) competitors enter the field and shift the power. But the big Pharma companies still fight for their prosperity and looking at them and what they’re doing makes a lot of developments obvious.
Knowing of the developments so far it comes as no surprise that the numbers and revenues in drug sales have decreased or at least not sufficiently increased over the last 2-3 years. That led the top Pharma companies to administer some cut-backs in research and development, especially in-house, forcing them to look outside their own facilities. In order to secure their level of innovation they had to increasingly use the assets of others and ultimately secure others as partners, inevitable to their value chain.
Another point the numbers from the Pharma big players make is that cancer is the number one partnering target. Opportunities seem to be big there, since “oncology-focused assets account for about 40%
of all partnering activity“ (source) within the top Pharma companies.
According the Pharma Intelligence Informa’s report “Pursuing Excellence – Charting Industry’s Top Performances“ the winners of the developments of the next 5-10 years are going to be Pfizer, who is most active in partnering and Sanofi, with it’s endocrine, metabolic, and genetic disorders portfolio as the principal growth driver at the top 1 and 2. Novartis and Roche are likely to struggle due to some of their flagship drugs under pressure a bit while Merck will secure top 5 just as well as Johnson & Johnson. GlaxoKlineSmith might fall a bit behind as well with their cornerstone franchises coming under pressure. It’s going to be tough at the top.
The top drugs are going to lose massively within the next couple of years. So companies with some of these top 10 drugs must make up for a considerable decline in sales there. And the development of the top drugs within the next 5-10 years will see more biopartnering and combination approaches, especially – again – in the oncology field.
Biotech companies are seeing a big part in the future development of the market. And although they have seen tough times financing their efforts, things have improved also in public markets. With a better position for the biotechs the Pharma companies are going to look at tougher deals in the future.
Meet the team of GenSearch at the main event in Europe for partnering – Bio Europe November 7th – 9th in Cologne