The New “Era Of Interdependence”
The life sciences industry is entering an “Era of Interdependence.” Different sectors of the industry are realizing that cooperation is the key success.
In the early 80s, it was common for life science businesses to rely on pharmaceutical companies. If a pharma company partnered with them, investors had validation of the science behind the company. In the 90s, the industry realized that pairing with Big Pharma didn’t guarantee success – product failures occurred equally for both. Many companies decided it was best to go at it alone, but soon discovered that product development was much more complex than expected.
In the new Era of Interdependence, we witness lots of experimentation. We see virtual drug development efforts. We see transactions where the acquirer buys the asset and continues funding only as certain milestones are met. New financing techniques are also emerging. Corporations, foundations, and institutions are setting up their own venture capital funds. There is a rise in private/public partnerships. Financing as individuals is playing a more important role.
These efforts will mature and change during this era. By focusing on how we can work together in new ways, we may be able to find cures for diseases more efficiently.
