Big pharma licensing revenues to top $100bn, report predicts

By 2008, licensing revenues at the top 20 global pharmaceutical companies will reach US$100bn, according to the latest study by global life sciences consultancy Wood Mackenzie.

Licensing Insight 2004 says income from licensed products will represent nearly a third of the pharmaceutical industry's total projected revenues.

This study finds that while revenues will continue to soar in the next four years, the number of deals overall has dropped since 1998. Specifically, more companies are shifting to early-stage deals due to the lack of late-stage products in development.

'Our study shows that as r&d development slows and licensing continues to be a key factor in driving growth, many pharmaceutical companies are re-examining their strategies,' said Sian Renfrey, a principal consultant with Wood Mackenzie. 'Companies that historically focused more on late-stage deals are now shifting to early-stage deals, which are more risky, but the focus is on accessing a pipeline of products in order to mitigate some of the risk due to the higher attrition rate developing earlier-stage products.'