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Tuesday, January 11, 2005

Biotechnology future.

What does the future hold for the Biotechnology industry as many of the small companies shift gears from research to Commercialization and in-licensing. I work for a small biotech or biopharmaceutical company as they are reffering to themselves now and I have some concerns. At this point we have licensed a very good novel antibiotic that I believe will do very well in the market place as our first commercial venture. My concerns arise as more and more small companies license out molecules to market instead of creating new ones like they did in the past. There is not an endless supply of unmarketed drugs out there for companies to choose from and as more companies inlicense products the well will keep drying up. Even now I feel that many of the licensed products are me-too and second class agents that merely compete on price and not clear clinical advantages.
Acute therapies will be hit the hardest because this is where the biotechs did there best work since the major pharma companies are all going the chronic care direction. It will be the patient that is ultimately hurt by this.
Another concern I have deals with the markets view of all of this. Will investors flee from biotech if there are no new good ideas and any radical ideas for new compounds? Why invest in a small pharmaceutical company selling a copy of a major pharma brand when you could invest in the real deal and have greater security? People don't invest money in the same old,same old they look for companies and people who have original ideas who are way ahead of their time that is what investing is about, so why would anyone be excited about an in-licensing minor biotech company that has gotten out of research and development?
Scary prospect for someone who relies on having new and novel products to sell.

18 Comments:

Anonymous Anonymous said...

As an analyst for the industry as a whole, I may have somewhat of a 'macro-view' of things; but regardless I have to say you just may be missing a point. Your company is under a lot of pressure to reduce the 'unethical' influence that the pharma industry has on the medical community. Lavish dinners, golf outings and tropical vacations have nothing to do with providing great information to doctors about your company's products. It is just about establishing relationships which would be fine in any other industry, but your company sells drugs.

Coming in the next few years is a change in direction from these kinds of practices. A lot of light is being shone on the marketing practices of pharma. A major push for doctors to make prescribing decisions based on the literature not sales reps is happening, and there is a lot of data coming in that sales reps aren't as effective in adding prescriptions as people once thought. Doctors are begining to feel pressure and many are closing their doors to reps.

I happen to think that sales reps offer an invaluable service to the industry and that marketing, in any industry, is absolutely essential...even from a patient-benefit persective. But more and more you will have to concentrate on the clinical results, not the dinners, a good hand shake and a nice suit.

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