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SOURCE Decision Resources
Rising Drug Development Costs and an Increasing Focus on R&D Efficiency Cause Biopharma Companies to Look Outward for New Product Opportunities, According to a New Report from Decision Resources
BURLINGTON, Mass., Oct. 16, 2013 /PRNewswire/ -- Decision Resources, one of the world's leading research and advisory firms for pharmaceutical and healthcare issues, finds that biopharma companies industry-wide are increasingly moving away from in-house research and toward acquisitive strategies to build their portfolios and grow sales. According to findings from the Strategic Insights report entitled In-licensing and Acquisition: the Changing Landscape of Product Development, the fraction of new product launches that originate from in-licensing has increased dramatically over the last decade. In 2012, 53 percent of new product launches were in-licensed during development, as compared to an average of 32 percent between 2003 and 2012.
The report also finds that while 72 percent of marketed products and pipeline compounds for large pharma companies are sourced in-house or through corporate acquisitions, the corresponding fraction for regional and mid-size companies is only 52 percent, likely reflecting the latter's reliance on in-licensing of brands for distribution in regional markets. Although company R&D budgets on average have remained constant as a percentage of pharmaceutical sales since 2008, the increasing cost of new product development makes it unlikely that in-house R&D programs can maintain constant levels of productivity.
"As biopharma companies look toward outside partnerships to supplement their pipelines, we see deal-making concentrated in therapeutic areas that are a combination of high sales and high growth, such as oncology," said Decision Resources Analyst Patrick Flight, Ph.D. "Whether the current trend of external sourcing of innovation will remain a viable strategy in an increasingly competitive market for in-licensing and product acquisition opportunities remains to be seen."
About Decision Resources
Decision Resources (www.decisionresources.com) is a world leader in market research publications, advisory services and consulting designed to help clients shape strategy, allocate resources and master their chosen markets. Decision Resources is a Decision Resources Group company.
About Decision Resources Group
Decision Resources Group is a cohesive portfolio of companies that offers best-in-class, high-value information and insights on important sectors of the healthcare industry. Clients rely on this analysis and data to make informed decisions. Please visit Decision Resources Group at www.DecisionResourcesGroup.com.
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