the SHAKEOUT

Deals will continue to occur, but a shakeout is coming to the pharma and biotech industry. Surviving in an environment like this starts with understanding the current situation, which presents industry leaders with a challenge because strong forces are pulling in opposite directions. The three sets of conflicting pressures are: 1. the exclusivity cliff vs. the Phase II "baby boom", 2. financial distress of emerging companies vs. reduced appetite for risk of larger companies, and 3. competition for products in select fields vs. an oversupply of development programs in de-prioritized areas. This article explores these conflicting pressures and discusses the five actions that smart out-licensing companies should take to thrive in this bifurcated market. The five actions are: 1. Evaluate your offering. 2. Tell your story well. 3. Leverage the advantage of multiple suitors. 4. Partner early. 5. Understand your potential partner's needs.