Focus on blockbusters creates opportunities for small companies
Opportunities for smaller pharmaceutical companies to build portfolios of niche medicines are opening up as a result of the pursuit of blockbuster drugs by the major multinational pharmaceutical companies.
In a statement, John Morris, global head of pharmaceuticals at management
consultants KPMG said: “Major pharmaceutical companies have invested
their efforts in developing blockbuster drugs and have not put as much
sales and marketing effort behind smaller, existing products. That has
created a tremendous opportunity for smaller drug and biotech firms to
benefit from these niche drugs.”
One example is the acquisition by US King Pharmaceuticals of the American
rights to two medicines, and a sales force of 375, from the Irish Elan
Corporation for $750m. The two medicines — Sonata (zaleplon), a
hypnotic, and Skelaxin (metaxalone), a 40-year-old muscle relaxant — had
combined sales of $238m in the US in 2002.
Similarly, Shire Pharmaceuticals recently paid $31m to acquire the patent
rights to Fosrenol (lanthanum carbonate), which reduces high blood phosphate
levels in end-stage renal failure. Such acquisitions enable smaller and
middle-market pharmaceutical companies to build a portfolio of established
drugs and to generate sufficient sales to fund new drug research.
Mr Morris said: “There is now a large range of products which is
no longer of interest to big pharma. Those drugs simply fall below their
threshold. However, there are now plenty of companies which are more
than comfortable with drugs generating $200m to $400m a year.” |
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