Ferghana has been a pioneer in providing Corporate Partnering advice, and remains a leader in this highly specialized field. The practice known as “Corporate Partnering” is even newer than the Biotech Industry itself, and arises from the need to match (a) the innovation and creativity of (usually) smaller and resource-poor Biotech companies with (b) the financial muscle, regulatory and clinical development expertise and marketing capability of Big (and even Medium) Pharma companies. Many studies exist which demonstrate that the research dollar spent by the Big/Medium Pharma and Big Biotech companies has, on average, been significantly less productive in developing new drugs than the equivalent amount spent on increasing the research of Biotech companies. Same comments apply – on a smaller and less frequent scale – to the Medtech and Diagnostic fields.
Not surprisingly, most of the Pharma and Biotech majors have now accepted that they cannot rely entirely on their own R&D efforts and that they must tap into the scientific expertise and creativity of the Biotech sector which they frequently do either by outright Acquisition, or by entering into a contractual Corporate Partnering arrangement. Hence, these Pharma companies (and Big Biotech) are receptive to the business initiations by Ferghana on behalf of its innovative Clients.