Big Pharma is in-licensing increasing numbers of preclinical and Phase I compounds despite the fact that their own early-stage productivity is up. Their goal is to increase shots on goal; to pay for the ballooning costs, however, they're increasingly willing to share downstream rights for near-term help on expenses.

Analysts watching the progress of Stryker's OP-1, the first orthobiologic device to deliver a manufactured bone growth-inducing protein, have long been aware that the design for the product's pivotal clinical trial had its shortcomings. Nonetheless, a US approval appeared likely, especially after the CPMP unanimously recommended the product for European approval on January 3. But three weeks later, FDA sent Stryker a not-approvable letter. As it turned out, however, the OP-1 news, coincident with the company's announcement of strong financial results for 2000, barely put a dent in its stock price.

The merger of Creative BioMolecules, Ontogeny, and Reprogenesis to form Curis Inc. was designed to build value long-term. Driven by their common focus on regenerative medicine, Curis combines near-term and longer-term product opportunities and creates a more formidable discovery engine to compete with larger companies in the field.