Fundraising among private biotechs has evened out this year, with larger early rounds reflecting the renewed "think-big" strategy of some start ups, and larger late rounds a consequence of less receptive IPO markets.

Schering's willingness to take over the marketing responsibilities for Novartis's Foradil respiratory drug, which has been largely superseded by combination products, to some degree measures the depths of Schering's troubles. But it also indicates the kinds of competition small-company in-licensers are likely to face. A whole industry of in-licensing focused players has grown up to sell the non-core products of Big Pharma: if Schering is any indication, the competition for these products is likely to get even more intense.

Lilly's co-promotion with Boehringer Ingelheim of duloxetine is the first time the American company has signed a major marketing deal for one of its own products. The company notes the collaboration is part of its broad commitment to partnering and that the market is intensely competitive. But the choice of duloxetine--the launch of which may be delayed indefinitely because of manufacturing problems--also represents Lilly's lowest-risk option for subsidizing the launches, and maximizing the returns from, potentially eight new products over the next few years.

At iO Pharmaceuticals, two former Genentech executives aim to do for Big Pharma what Genentech, with its creative financing techniques, did for itself. By setting up a clinical development company, they plan to create off-P&L financing structures which will allow drug companies to develop more products without decreasing earnings.