That seems to be the current motto of many big pharma companies and describes their relationship to biotechs. But if you go that route, you will pay handsomely. Fierce Biotech reports (via Bloomberg) that pharma companies are forking over on average a 71% premium in picking up new biotechs (worth > $500 M) for their pipelines. This is reportdly the highest premium since 2000.
So if you read the previous post about "bad culture" in Big Pharma, another cost (beyond poor R&D productivity) seems to be having to pay the piper when it comes to buying from the biotechs. Cutting the R&D budget likely won't help rectify that -- although it may help fund it a bit.
Supply and demand is taking over and the acquisition prices will keep rising as a result in the short term.
Posted by Bruce Lehr Apr 25th 2012.
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