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Our Strength
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Co-development of late stage new drug in China
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Among five thousands of Chinese pharmaceutical companies, 30% of them are struggling to survive through a tight regulation on generic drug by CFDA. Thousands of such company have turned to the United States for partnership. Given huge amount of capitals these companies are holding, U.S pharmaceutical company will benefit from such partnership if the partnership is well designed. Millennium Pharmaceuticals is an example of a company that from its inception built its entire business model around co-development. When Millennium was created, its founders realized that they did not have the capital and scale to take multiple new drugs through the 10-year or more development process required in order to gain Food and Drug Administration approval. So, they focused on the early portions of drug development only and partnered with larger firms such as Pfizer and Merck to handle the later stages of drug development (e.g., clinical trials and commercialization). Hence, Millennium's early business model became one of technology licensing rather than selling drugs to consumers. As it grew, however, it was able to evolve its business model and eventually become a direct (and successful) competitor with its former partners in the full drug development business, leveraging new co-development relationships for other parts of its business. As Millennium (and many others) have demonstrated, when well conceived and well managed, co-development can increase the return from internal R&D, by leveraging the capabilities of a partner firm. Licensing and purchase of the drug are also a good strategy for U.S pharma companies and investors to have an early exit option. Please feel free to talk to us about your specifics needs and concerns so we can work out a perfect plan for your company. |
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