Personally I believe that big Pharma spends much o
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Posted On: 03/31/2018 1:43:23 PM
Personally I believe that big Pharma spends much of their time and money defending and extending their patents on blockbuster products, and little in developing new dramatically different technologies and drugs. They step in when tiny biotech or research organizations have developed great new products and either partner them, or buy the companies.
Probably the biggest reasons most tiny biotech's can't bring products to approval is the cost of Phase 3 trials, but this may change if Gottlieb is successful in changing the way the FDA does business. Small biotech's may be able to afford to take drugs to approval, and with contract facilities making the drugs may be able to provide sufficient quantity of the drug to meet demand without spending the hundreds of millions it costs for production facilities. I'm not suggesting they won't need big Pharma at all, but if they take drugs to, or near approval, they can partner on far better terms as they need big Pharma for distribution around the world, though they may keep the U.S. to themselves. I think it's time that a more equitable split of the sales revenue takes place, and that can happen if tiny biotech's can take drugs essentially to approval because the cost of doing so is dropping. As is, the developer of drugs rarely sees much over 10% of sales revenue, and frequently substantially less than that until a drug reaches blockbuster levels through a series of milestones based on sales goals.
Gary
Probably the biggest reasons most tiny biotech's can't bring products to approval is the cost of Phase 3 trials, but this may change if Gottlieb is successful in changing the way the FDA does business. Small biotech's may be able to afford to take drugs to approval, and with contract facilities making the drugs may be able to provide sufficient quantity of the drug to meet demand without spending the hundreds of millions it costs for production facilities. I'm not suggesting they won't need big Pharma at all, but if they take drugs to, or near approval, they can partner on far better terms as they need big Pharma for distribution around the world, though they may keep the U.S. to themselves. I think it's time that a more equitable split of the sales revenue takes place, and that can happen if tiny biotech's can take drugs essentially to approval because the cost of doing so is dropping. As is, the developer of drugs rarely sees much over 10% of sales revenue, and frequently substantially less than that until a drug reaches blockbuster levels through a series of milestones based on sales goals.
Gary
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