In Vivo is part of the Business Intelligence Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC’s registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

This copy is for your personal, non-commercial use. For high-quality copies or electronic reprints for distribution to colleagues or customers, please call +44 (0) 20 3377 3183

Printed By


The Infrastructure Dilemma

Executive Summary

Most drug companies struggle against duplicating in their biotech partners the development and marketing infrastructure that will support the collaboration's product. And though they frequently lose that battle, biotechs generally have to co-fund their share of the expenses, including infrastructure. But the Neurocrine/Pfizer transaction on indiplon marks a new valuation sign post. Not only will it pay significant up-fronts, milestones, and royalties, but Pfizer will fund all further clinical work, while Neurocrine makes final development decisions, and 100% of the creation and maintenance of Neurocrine's sales and marketing group, while supplying it with a blockbuster quid, Zoloft. Pfizer's strategy: to turn infrastructure overlap into sales augmentation: it will control indiplon's marketing and, by helping to train Neurocrine's sales force, be able to exercise considerable influence over its direction and activities. Moreover, if it chooses to acquire Neurocrine, it will be able to do so with minimal integration issues since the Neurocrine marketing team will have been so closely associated with the Pfizer way of doing things.

Related Content

Insomnia: Pharma Wakes Up to the Next Huge CNS Market
Jumpstart to Products
Why Less Is More: The Hidden Cost of Complexity in Pharma Alliances
The Cooperative, Competitive Future of Pharma R&D
Shaking Up the FDA
McClellan, Wall Street and Increasing FDA Predictability
Medical Acquisitions: No Icebreaker in Sight
EyeTech: Primary Care Dollars for Specialty Pharma
Licensing Trends By Clinical Phase
GSK/Exelixis and In-Licensing: Earlier, Richer, Rarer


Related Companies

Related Deals




Ask The Analyst

Ask the Analyst is free for subscribers.  Submit your question and one of our analysts will be in touch.

Your question has been successfully sent to the email address below and we will get back as soon as possible. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts