Looming patent expiry a major force in driving valuation

Drugs with annual sales totalling over US$86 B in 2007 are due to go off patent by 2012. Therefore, the application of novel drug delivery technologies to such existing therapeutics is an attractive means of prolonging the commercial viability of marketed drugs.

Technologies are more difficult to value than products in clinical development because the technical risks or success rates are less well documented, and costs and timescales are less predictable.

It is very important to benchmark when valuing technologies and to have a thorough understanding of the risks and rewards.

This new report covers the range of strategies and offerings available to the deal maker, and is vital for understanding growth and survival in volatile markets.

Title Index:

1. Introduction

2.Market Overview
2.1 Types of Drug Delivery
2.2 Development of the Drug Delivery Market
2.3 The Current and Evolving Market
2.4 Future Market Challenges
2.5 Drug Delivery Companies
2.5.1 Principal Players in Drug Delivery
2.5.2 The Changing Landscape: M&A Activity
2.5.3 The True Scope of the Drug Delivery Sector

3.Key Drivers in Drug Delivery
3.1 Improving the Therapeutic Index
3.2 Patient Compliance
3.3 Patent Prolongation
3.4 Life Cycle Management

4. Commercialisation Strategies
4.1 Introduction
4.2 Returns to Innovation
4.3 Drug Delivery Product Offerings
4.4 Exploitation Strategies
4.5 Business Models
4.6 Product, Strategy and Business Models for Drug Delivery Technology
4.7 Applicability to Segments of the Pharmaceutical Product Life Cycle
4.8 Assessment of Attractiveness of Each Option
4.8.1 Divestment to a Service-Based Company
4.8.2 Licensing to Pharmaceutical Companies
4.8.3 Sales of Devices
4.8.4 Service Offering
4.8.5 Development of Drugs in Collaboration with other Companies
4.8.6 In-House Drug Development
4.9 Compatibility of Product Offerings
4.10 Conclusion

5. Alliances in Drug Delivery
5.1 Drug Delivery Deals Database
5.2 Drug Delivery Deal Activity
5.3 Financial Analysis of Drug Delivery Deals

6. Major Pharmaceutical Company Drug Delivery Deal Activity
6.1 Johnson & Johnson
6.2 Pfizer
6.3 GlaxoSmithKline (GSK)
6.4 Novartis
6.5 Sanofi -aventis
6.6 Roche
6.7 AstraZeneca
6.8 Merck & Co
6.9 Abbott Laboratories
6.10 Wyeth

7. Valuation Methods
7.1 Integrated Benchmarking and ENPV Calculation
7.2 Other Methods
7.3 Benchmarking
7.3.1 Feasibility Search
7.3.2 Information Gathering and Analysis
7.3.3 Approximate Valuation
7.3.4 Refi nement of Valuation
7.4 Expected Net Present Value
7.5 Agreement Structure
7.5.1 Value Sharing
7.5.2 Risk Sharing
7.6 Valuation of Drug Delivery Systems
7.6.1 Enabling Technology
7.6.2 Enhancing Technology

8. Drug Delivery Alliance Development Process
8.1 Needs Identifi cation
8.1.1 Driving Factors
8.1.1.1 Market Drivers
8.1.1.2 Technology Drivers
8.1.2 Tools Needs Identifi cation
8.1.2.1 Portfolio Analysis
8.1.2.2 Value Chain Analysis
8.2 Identifying Opportunities and Partners
8.3 Development of Commercial Relationships