Downturn in Pharmaceutical Stocks

[Rakesh Bhandari]

Another development to look at is threat posed to older pharmaceutical
firms by start ups, involving university faculty who act as advisors or
entrepreneurs, with financial backing from venture capitalists. There is
however the possibility of a new complex division of labor developing.
Start ups tend to be important in applying biotech to drug manufacture
while the expertise of established drug firms in organizing and managing
clinical trials and otehr regulatory matters, as well as the established
firms' marketing capabilities, means that biotech 'research boutiques'
often colloborate with established firms. Instead of competition there may
be cooperation through investmetnts, joint ventures, licensing and
eventually acquisition. I draw here from David Mowery and Nathan Rosenberg,
Paths of Innovation, but the book to look at would probably be Martin
Kenny's on the biotech-university complex.

yours, rakesh