GlaxoSmithKline looks for innovation
UK-based GlaxoSmithKline, the #3 pharmaceutical company, made several big deals recently with small biotech companies in an attempt to fill up its emptying drug pipeline.
It bought UK biotech company Domantis for $454 million. Domantis makes genetically modified antibodies for helping the body's immune system.
Then it bought rights to distribute e HuMax, a new leukemia drug developed by Danish company Genmab AS for up to $2.1 billion. That may be the biggest drug licensing deal to date. Genmab will also realize royalties from the drug. The move is part of GSK's extension into the cancer treatment sector.
According to a study quotred at drugresearcher.com, ("GSK sign world's-biggest licensing deal with Genmab", 12/20/06) "the top 20 pharmaceutical companies are becoming increasingly dependent on in-licensed products, with an average of 19.5 per cent of their total ethical sales being derived from these in 2004."
The move is a apart of a tend form big, often faltering, pharmaceutical companies to snap up biotechs to give them new drugs to market. For example, this year U.S.-based Merck acquired two biotechs, Abmaxis and GlycoFi, along with $1.1 billion to buy Sirna Therapeutics
Once again, it is small innovators being bought up the behemoths who have failed to keep producing new drugs.
7:48:28 PM 
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