Morgan Stanley to Drug Companies: "Exit Research"; Pfizer and GSK: "We Hear You!"

Yesterday, I wrote on PharmaQbD.com about a new Morgan Stanley report which suggests that small-molecule drug manufacturers (and to a lesser degree biologics manufacturers) have very little financial incentive to perform their own research and development activities. The old arguments about keeping certain core competencies in-house and managing risks don't hold water anymore, the report says. Attrition rates for target therapies are just too high to justify the cost of doing them in-house, Morgan Stanley says. The new model: S&D, or Search and Development.

The report says the AstraZeneca and sanofi-aventis best exemply the S&D model. But as if on cue, Pfizer and GSK announced more major cuts in R&D spending. Given the trend towards greater outsourcing of manufacturing as well, it appears the days of virtual Big Pharma companies, who neither discover, develop, nor manufacture, are close at hand.

--Paul Thomas

Show Comments
Hide Comments

Join the discussion

We welcome your thoughtful comments.
All comments will display your user name.

Want to participate in the discussion?

Register for free

Log in for complete access.

Comments

  • <p>The business, focused solely on research, development and commercialization of HIV medicines, will capture 19% of the category's global market share, the statement said. Initially, GSK will hold an 85% interest in the company, with Pfizer at 15%. <a href="http://www.androidappdeveloper.net/">developers for android</a></p>

    Reply

RSS feed for comments on this page | RSS feed for all comments