Pharmaceutical companies are attempting to solve unprecedented R&D and commercial challenges via business development, emphasizing cheaper, earlier-stage alliances and building up a base in emerging markets. An analysis of dealmaking trends from 2007 to 2010 shows big companies are embracing new kinds of partners, and shifting away from historic areas of interest to pursue hyper-specialty products and generics.

With funds and firms closing, a new reality awaits those who survive until the next economic upswing. Some of the elements are already in place, such as VCs' willingness to take capped returns and exits via risk-sharing contingency-based acquisitions. The emphasis on capital efficiency may change the types of companies VCs can afford to back, and corporate funds are now a vital part of biotech venture, especially in the early stages.

Gene sequencing instrument providers are currently at the center of a range of corporate activities: acquisition, partnering, financing. As technology innovation continues, costs decrease, and the pace and scope of clinical genomic studies picks up, the notion of sequencing as the foundation for a clinical diagnostics platform is gaining more support. Delivering value to diagnostics customers ultimately may demand that instrument providers move downstream, involving themselves in data analysis and workflow and even test development, to prime the clinical market.