With the Pharmaceutical Industry Relying on M&A in 2009, Cutting Edge Information Provides Insight to Avoid Potential Pitfalls

RESEARCH TRIANGLE PARK, NC--(Marketwire - December 9, 2008) - In the recent past, drug companies facing patent expirations and dwindling pipelines could find a quick fix for their problems by picking up new technologies and drug candidates via licensing opportunities that held a much smaller price tag than M&A. Now, however, the economic downturn threatens to limit pharmaceutical companies' access to drug development innovations, as many small pharmas and biotechs are being forced to close their doors.

Two reports from biopharmaceutical business intelligence leader Cutting Edge Information provide key business development strategies for drug companies to survive -- and even thrive -- during the ongoing economic crisis:

--  "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

Small companies focused on novel compounds are finding it increasingly difficult to garner financial backing while still maintaining their independence. The easy IPO is now a thing of the past. Enter big pharma.

While financing opportunities for most industries are quickly evaporating, big pharma enjoys a stockpile of cash that will be used to pick up smaller companies in the coming year. With their targets fearing closure, larger companies can acquire small pharmas and biotechs at deeply discounted rates.

"Over the long term, acquisitions may be cheaper than licensing," says Eric Bolesh, research manager at Cutting Edge Information. "Not only does M&A allow a large company to pick up the promising compounds it needs to fill its pipelines, but it also retains all the intellectual property and key personnel acquired in the deal."

However, Bolesh cautions big pharma on one key aspect: principles of alliance management utilized with partner companies must also shape relations with an acquired company, or the acquisition will quickly turn into a liability. "Acquisitions are also partnerships. Companies must work well together because there is no kill-clause to invoke once the deal has been signed."

For a complete business development picture, 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, please visit http://www.cuttingedgeinfo.com/reports/Library_Business_Development.htm.

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