Licensing Deals Fall as R&D Expenditure Is Cut

A study says overall pharmaceutical deal-making activity fell 18% in 2011 as pharmaceutical companies cut R&D expenditure and streamlined their research and development activities.

According to a study by UK advisory firm PharmaVentures, overall pharmaceutical deal-making activity fell 18% in 2011 as pharmaceutical companies cut R&D expenditure and streamlined their research and development activities.

The study says licensing deals fell by 16% while the most sought-after assets commanded sizeable premiums in 2011. In contrast, M&A activity remained robust in 2011 and deal values rose by 30%, although contingent payments were commonplace, the authors say.

In terms of therapeutic area, cancer-based deals continued to dominate the landscape, with Roche being the most prolific firm. Emerging markets also remained at the top of the dealmaking agenda, particularly in India and China.