Small Companies Must Use Business Development Best Practices to Garner Licensing Agreements With Pharma, Says Cutting Edge Information

RESEARCH TRIANGLE PARK, NC--(Marketwire - March 24, 2009) - Just a few months ago, biotech companies were set to overcome the lack of available venture capital through big pharma acquisitions. However, Pfizer's $68 billion acquisition of Wyeth and Merck's $41.1 billion merger with Schering-Plough have drastically cut the available business development funding, leading to an uncertain future for the hundreds of small pharma and biotech companies struggling to remain in operation.

A ray of hope emerged when Sanofi-Aventis CEO Chris Viehbacher announced in February that the company will cut its internal R&D budget in half and earmark the savings to licensing opportunities with an eye toward future acquisition. Even so, business development staff must sift through hundreds -- even thousands -- of viable opportunities, and many promising compounds fall through the cracks.

Two reports from biopharmaceutical business intelligence leader Cutting Edge Information provide key business development strategies for small companies to rise above their competitors and garner a piece of pharma's money:

*"Business Development: Accelerating the Deal," available at www.PharmaDealMaking.com

*"Pharmaceutical Alliance Management," available at www.cuttingedgeinfo.com/pharmadealmaking/index_PH119_alliance_management.htm#body

"While a compound's science must still be compelling, science alone no longer guarantees an appointment with the director of business development," says Eric Bolesh, research manager at Cutting Edge Information. "Business development teams at big pharma are under enormous pressure to salvage their companies' pipelines. They cannot risk throwing money at deals that are destined to fail because the companies do not mesh well."

To make it through the door, small companies must prove that their company aligns well with the potential in-licensor. Successful alliances stem from similar views toward milestones, revenue agreements, reporting lines and conflict resolution strategies, among others. Though some compromise will be expected by both companies in the agreement, small pharma and biotech companies must understand that big pharma holds the purse strings and, accordingly, makes most of the rules.

For a complete business development picture for all pharma and biotech companies, Cutting Edge Information offers "Business Development: Accelerating the Deal" bundled with "Pharmaceutical Alliance Management." Together, these reports provide guidance and benchmarking figures from the beginning stages of deal-making -- opportunity identification and due diligence -- through complicated deal negotiations and the ever-difficult task of alliance management.

For more information on the business development and alliance management studies, visit http://www.cuttingedgeinfo.com/reports/Library_Business_Development.htm.

Contact Information: CONTACT INFORMATION: Eric Bolesh 919-433-0209