The WSJ Health blog published this commentary noting that increasingly Big Pharma and Biosimilars (formerly generics only) are competing more head to head. Big Pharma is crossing more into biosimilar territory as they lose drugs to the patent cliff and try to claim some of the resulting biosimilar or generic revenue as their own. Generic/biosimilar competitors are increasing partnering with or buying companies that produce novel therapeutics as a means of expanding their offering and protecting themself from generic competition.
I'm not sure what the surprise is here. As the world competition becomes more global and the industry consolidates through mergers -- I think it is natural that these companies with start converging in a similar space. As I've posted here many times, I think a significant number of competitors will be selling innovative drugs, generics and biosimilars -- alone and in partnerships and there will soon be little distinction among the majority of the biggest players.
This seems to me to be merely the result of a natural evolution of a competitive market. Let the best men and women win. Soon you won't be able to tell the players without a score card.
Posted by Bruce Lehr July 26th 2011.
As you note, this could be expected given the competitive market situation we see now. But it is amazing to me that it took so long to be "topical". Back in 2004, I was advising one of the top two pure biotech firms to get ready for that competition. My point was that traditional Big Pharma HAD to shift to biotech to survive. They did not see that as a threat, feeling their lead and expertise could not be matched...
The thing then as now is the economics. A simple graphic I used then is still relevent: http://www.randdreturns.com/converts-to-big-biopharma/ This is why firms like BMS have completely reinvented themselves towards biotech R&D.
Posted by: Terry McCormick | 07/26/2011 at 07:40 PM