Executive Summary

Late-stage products are more valuable than ever, as products and as licensing currency. Drug originators, for example, can generate the same kinds of partner funding and commitment from mere co-promotions that were once available only from joint ventures or outright exclusive out-licensing deals. But no one except Big Pharma seems to reap the rewards on Wall Street--largely because investors believe that new entrants can't overcome the increasing barriers to the drug business. With their shares in the doghouse, biotechs who have successfully launched products are struggling to craft strategies that will prove their staying power and long-term value.