Market Insight – Finding cash in unconventional places
This article was originally published in Scrip
Executive Summary
A perfect storm of challenges is thrashing clinical development. There is increased pressure to replace ageing blockbusters amid an environment of rising development costs and shrinking budgets. The usual response of reducing costs through productivity gains and outsourcing initiatives is no longer enough to fund pipeline development. Now, the pharmaceutical industry is on the cusp of a new model. Innovators are increasing development budgets by using alternative financing. They are learning from the biotech community, which has relied on alternative financing as a way of life.