Executive Summary

When Inhale Therapeutic Systems bought Shearwater, a provider of PEG (polyethylene glycol) technology and development services, it did so to extend its drug delivery capabilities beyond particle-based formulations. But another part of the rationale was to jigger its mix of programs to include both near- and longer-term projects, and to achieve a balance of high- and low-risk projects. As evidenced by its recent spate of deal announcements, the emerging deal-making power of small and mid-sized companies is helping Inhale accomplish those goals.