Collaborations Increasing To Reduce Development Risk, Study Reveals

Pharmaceutical and biotech companies are increasingly seeking ways to accelerate new drug development and lower the risks involved with drug development through strategic collaborations with developers and other service providers. Pharmaceutical and biotech R&D leaders discussed this and other industry issues in a recent roundtable discussion hosted by the Tufts Center for the Study of Drug Development (CSDD).

Roundtable participants agreed that “well-structured collaborative agreements, in which the parties agree to share risks and rewards, can increase the possibility that a new medicine, which otherwise might not get to market, wins regulatory approval — and at lower cost,” according to Tufts CSDD.

The statistics support this discussion, with Tufts studies showing that more than half of all new drugs approved in the U.S. between 2000 and 2011 were developed by companies that formed collaborative relationships.

"The significance of these relationships involving drug sponsors, developers, and external service providers is that they become stakeholders in each other's business — not just customers and vendors — who stand to gain, or lose, together," said Tufts CSDD Director Kenneth Kaitin.

Other discussion points that stemmed from the roundtable, were highlighted in the August Tufts CSDD R&D Management Report, released last week.  These included:

• Successful risk-sharing partnerships: These types of agreements are normally governed by a charter, ensuring executive engagement. They also clarify roles and tasks that each organization and key individuals will handle as well as define success metrics and quality measures.
•  Large pharmaceutical companies: It’s becoming the norm that Big Pharma businesses create stand-alone entities that have access to corporate resources, while still having the flexibility to partner with an external early-stage development company.
• Pre-competitive alliances: “These are likely to continue to increase in number because they help set and proliferate standards and reduce redundancy,” reported Tufts.