Big Pharma May Be Big Player in Follow-On Biologics Market
This article is a reprint from the April 2008 issue of The RPM Report. As Congress works on an approval pathway for follow-on biologics, generic drug companies are jockeying for investors' attention. But given that most generic manufacturers may be ill-equipped to handle the development of follow-on proteins, some analysts think the real opportunity is where you'd least expect: inside Big Pharma and biotech.
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Merck outlined ambitious plans for launching and growing a follow-on biologics business during its annual business briefing Dec. 9
You have to go back to 1983 to find a year as bad as 2007 for R&D output. It was a terrible year by any measure. The key question for industry: does it need to learn to subsist on a trickle of new drugs coming to market each year, or is the current drought in fact a sign of a transition to a new, more innovative R&D model? The sparse class of 2007 does offer some glimmers of hope.
Generic drug companies have been spurned by Wall Street in the past in favor of their brand manufacturing counterparts. With high generic use rates in Medicare Part D and a perceived inevitability of follow-on biologics, investment in pharmaceutical copycats is on the upswing.