Generex Biotechnology Corp. (fka GNBTQ)

[TraderUsa]

GNBT Great Article of Oral-lyn

Co-development and licensing deals set to spur on diabetes market growth

Article | 15 April 2012


The development of new diabetes medications are now more-commonly the result of deals between companies, a new study by pharmaceutical intelligence expert GBI Research has revealed.

The report found that, while major companies account for significant shares of the market, smaller firms are more able to compete using new strategies involving mergers, acquisitions, licensing deals and co-operation within the market, which is expected to boost product development until at least 2017.

Enjoying this article? Have the leading Biopharma news & analysis delivered daily on email by signing up for our FREE email newsletter here.

Over 60 million people around the world suffer from diabetes, with the diabetic population currently rising further in key markets such as the USA, the UK and Germany, increasing the profitability of popular diabetes therapeutics. While the diabetes market is presently dominated by insulins, demand remains for products that are easier for patients to administer, and this growth potential is driving deals activity in the industry.

Product failures such as GlaxoSmithKline’s Avandia (rosiglitazone) and Takeda and Eli Lilly’s Actos (pioglitazone), which were found to increase the probability of heart-related complications, have further increased the need for promising pipeline molecules to reduce dependency on drugs such as insulin analogues and biguanides. This has led to increased competition in the market and paved the way for agreements between companies that would have previously been rivals, GBI notes.

Major acquisitions also a factor

GBI Research has found that licensing agreements and co-developments accounted for the majority of the total 295 deals that took place during 2004-2011. Major acquisition activity also took place in 2010, including the acquisition by Astellas Pharma of OSI Pharmaceuticals in June 2010, and Sanofi’s acquisition of Ascendis Pharma’s worldwide rights to a gradual release technology for diabetes drugs.

GBI Research anticipates that the diabetes therapeutics mergers and acquisitions landscape will continue to be active in the future, as several pharmaceutical players are seeking strategic partnerships with companies that boast promising marketed or pipeline drugs. Future licensing activities involving approved products such as Januvia and Galvus, and Phase III products such as Oral-lyn, will also significantly impact the market.

Source: http://www.thepharmaletter.com/file/112561/co-development-and-licensing-deals-set-to-spur-on-diabetes-market-growth.html