Drug Delivery Technology - July/August 2007

Licensing
Strategies
Specialty Pharma: Business
Development & Licensing Strategies

By: Barath Shankar, Research Analyst,

Pharmaceuticals & Biotechnology, Frost & Sullivan

Introduction

JULY/AUGUST 2007 Vol 7 No 7

Specialty Pharmaceutical companies focus on different stages and aspects of drug development and marketing in addition to partnering with large pharmaceutical companies in the life cycle management of their products. The areas of expertise for these companies include drug delivery, clinical development, generic drugs, and sales and marketing. Specialty Pharmaceutical companies typically focus on one or two of these areas, leveraging their expertise and positioning themselves in a niche pharmaceutical market.

• Strategy 3: Develop drug delivery technologies for existing and new products.

• Strategy 4: Develop and market generic pharmaceuticals.

Most Specialty Pharmaceutical companies adopt a mix of these business development strategies in a specific field, or a range of related therapeutic areas, and have portfolios that consist of a range of products that have revenues of a few hundred million dollars a year. Core R&D, which begins from screening and preclinical trials, is an expensive and challenging area and is typically carried out by universities, start-up companies, as well as large pharmaceutical and biotechnology companies, which are a partner of choice for Specialty Pharmaceutical companies. By limiting the therapeutic area of focus, Specialty Pharmaceutical companies are able to develop

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Business Models

CIALTY PHARMA

The business models of Specialty Pharmaceutical companies can be broadly classified into the following four types:

Company Model 1 Model 2 Model 3 Model 4 Teva Pharmaceutical Industries Ltd. Medium Medium Low High Forest Laboratories Inc High High Low Low Allergan Inc Low High Medium Low Watson Pharmaceuticals Inc High High Low High King Pharmaceuticals Inc High High High Low Barr Laboratories Inc Low High Medium High Cephalon Inc Medium Medium Low Low Endo Pharmaceuticals Low Medium Medium Medium