An ideal partnership between pharma and biotech startups
A major overhaul of the pharmaceutical industry is underway as lucrative drug patents are ending, budgets are tight, and research and development costs are rising. The higher costs to complete new drug trials and bring new drugs to market are becoming harder to find. In an effort to minimize costs, the workforce within the research and development departments of pharmaceutical companies is being reduced. Projects are winding down for many pharmaceutical companies and they are beginning to look for innovative ways to generate new revenue.
With the loss of these end-to-end teams, it is no longer feasible for one company to manage all aspects of the research, development, creation, testing, and sales of every new drug. Many of the major pharmaceutical companies are changing drug research and development by creating partnerships with biotech startups.
These new biotech companies are driving basic research into developing new pharmaceuticals and building portfolios of pharmaceutical companies. Currently, the main patents of a large number of brand-name drugs are expiring; these companies will lose money as the drugs become available in generic form. New biotech companies will carry out much of the necessary research on all aspects of human health and genetics, while creating the basis for new pharmaceuticals. Biotechnology companies provide innovative research and technology and provide ongoing options for the treatment of patients. The main areas of medication are oncology, disorders of the central nervous system, diabetes and immunology.
Seeking outside companies for research, such as biotech startups, provides an innovative perspective on potential products in the biotech field. Venture capitalists seek to minimize risk in their investments. Biotech startups offer minimal investment risk by granting exclusive rights to any research or product to pharmaceutical companies created through this collaboration. Rewards are used as motivation to reach milestones, budgets, and results. This ensures that investment in new biotech companies will create future business, as each company is strongly committed to its success. Biotech startups benefit from these partnerships as they have a hard time raising funds to get started and survive. These associations are an ideal situation to create partnerships with pharmaceutical companies that have financial backing.
With the challenges facing both pharmaceutical companies and biotech startups in the current economic climate, creating a partnership between these companies is the best hope for both industries to survive and excel. All aspects of healthcare will benefit from these new partnerships.