Licensing strategy is the key

In an increasingly competitive market effective licensing strategies have become a key component of the business development mix for pharmaceutical companies trying to improve their market share, says a new study from strategic analyst and life science consultancy Wood Mackenzie. The Licensing Insight study identifies those companies that have successfully integrated product licensing into their growth strategy.

Pfizer is by far the leader in terms of overall commercial success of licensing, with total revenues of US$15.1bn in 2002 from licensed products, including Celebrex and Lipitor. But GlaxoSmithKline stands out from the pack in terms of number of deals secured over a 15-year period, and is currently progressing more than twice as many licensed products through development as any other pharma company, the study says. Merck and Amgen have also significantly stepped up licensing activity in recent years in recognition of the importance of bolstering their in-house r&d activities. Meanwhile, the European majors Roche, Novartis and Aventis have embraced licensing activity as a core component of their business development strategies in recent years.