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Corgentech/BMS: Finding Specialty Appeal in a Drug/Device Combo

Executive Summary

Bristol-Myers Squibb is the latest Big Pharma to step into a specialty market, via a deal to co-promote a drug/device combination being developed by Corgentech. The product is meant to prevent vein graft failure common after bypass graft surgery in the heart and the legs. For the Big Pharma, the appeal of this specialty product is all about higher margins from lower costs, since it will be sold to surgeons in hospitals. The biotech originator wanted a partner to help it get to market faster, manage the product's life cycle, and handle quotidian tasks that add costs but not value to a small firm.
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