The good news is that Israeli companies know how to bring drugs to preclinical and clinical trials at low cost.
A new survey on the global pharmaceutical industry by Ernst & Young shows that the industry's priority is to cut costs. This could be both good and bad news for Israeli start-ups.
The good news is that Israeli companies know how to bring drugs to preclinical and clinical trials at low cost, which means that in the competition as takeover targets they have an advantage. The bad news is that cost cutting also means fewer acquisitions.
Ernst & Young says that now is the time for takeover targets to show potential buyers slow cash burn rates and favorable cost-benefit ratios of final products.
Pressure is rising for pharmaceutical companies to cut costs because it is becoming harder and more expensive to register new products, both because of strict regulatory requirements and because fewer new innovative drugs with proven effectiveness are being discovered in trials. Every successful new drug has to subsidize the failures.
Published by Globes [online], Israel business news - www.globes-online.com - on May 27, 2008
© Copyright of Globes Publisher Itonut (1983) Ltd. 2008