PharmaTimes (01/26/12) Grogan, Kevin
Overall pharmaceutical deal-making activity fell 18 percent in 2011 as drugmakers slashed research and development expenditures and modernized their research activities, according to a PharmaVentures report. The review of PharmaVentures' database found that licensing pacts dropped by 16 percent "while the most sought-after assets commanded sizeable premiums in 2011." Although mergers and acquisition activity remained strong in 2011, with deal values increasing by 30 percent, contingent payments were commonplace. The report also notes that "oncology-based deals continued to dominate the landscape," with Roche being the most productive company. In addition, the report says that emerging markets remained at the top of the deal-making agenda in 2011, particularly India and China. PharmaVentures' Fintan Walton says that in spite of falling R&D productivity and the loss of patents by blockbuster drugs, "with quality assets commanding higher premiums there is still a significant opportunity for great deals to be done."

Read the complete article