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    Home > Medical News > Latest Medical News > Twelve of the world's largest drugmakers have split up nearly 40 research and development companies in a decade.

    Twelve of the world's largest drugmakers have split up nearly 40 research and development companies in a decade.

    • Last Update: 2020-09-19
    • Source: Internet
    • Author: User
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    Medical network September 11th, "a long time must be combined, a long time must be divided."
    for pharmaceutical companies, each of the strategic shifts is mostly to make the overall structure of the enterprise more suitable for future business development.
    especially for large pharmaceutical companies, which used to move towards diversification, but now the focus has become the industry consensus, stripping out the non-core part is the industry trend.
    divestiture is a common business operation in contrast to mergers and acquisitions.
    like mergers and acquisitions, divestitures can be for products/research and development pipelines, business segments, or companies.
    the reasons for the divestiture are nothing more than wanting to focus more on themselves, or on developing the spin-off business.
    if the part you want to divest is temporarily unseeded or unwilling to transfer, it is simply to split it up and let it run independently or even go public.
    39 companies were spun off: AstraZeneca was more successful in the spin-off, with Merck's most positive table being the "derivative company" profile of the major large drugmakers counted by Evaluate Vantage, which focused on identifiable companies driven by large drugmakers as parent companies, and involved only the spin-off of research and development companies, rather than the sole divestiture between the business unit and the listed product.
    Chart 1: "Derivative Companies" Profiles of Major Big DrugMakers Source: EvaluatePharma, China Health Industrial Capital Research Center, 39 such companies are on the path to independent growth, most of them split from 12 of the world's largest drugmakers in the past decade, in terms of parent companies and split times.
    10 have been successfully listed, eight are still privately owned, 11 have been acquired and the remaining 10 are either bankrupt or no longer appear to be active.
    about a third of the 39 companies have successfully listed, which is impressive, since most of them were set up in early projects.
    , though, is perhaps not surprising, since these drugmakers are willing to spend time and money setting up a new company, with a good chance of seeing its future potential.
    , in order to better focus on their core business, focus on doing great things, can only disguise the "abandonment" of this part.
    , all three AstraZeneta spin-offs have been listed and are a more "successful spin-off".
    June, Viela Bio's anti-CD19 monoclonal antibody Uplizna was approved by the FDA for use in the treatment of patients with optic neurospinal cord disease (NMOSD).
    is not easy for a company that only started in 2018.
    , it also marks a successful transition from research and development to the market at Vila Bio, a spin-off of pharmaceutical giant AstraZeneta.
    Bio is a biotechnology company dedicated to developing innovative therapies for autoimmune and severe inflammatory diseases.
    February 2018, AstraZeneta announced that it would spin off Viela Bio into an independent biotech company, and in October 2019, Viela Bio was listed on NASDAQ.
    , two other companies have been spind off from AstraZeneta, Albireo and Entasis.
    , which was split from AstraZenecon in 2008 to focus on the development and potential commercialization of new bile acid regulators, was founded in 2015 with AstraZenecon's start-up capital and some research and development platform mandates to discover and develop new antimicrobial products.
    both are listed on NASDAQ and have products in Clinical Phase III.
    can be seen as one of the more successful big drugmakers in splitting up its "unwanted" assets and building new companies.
    note that Merck KGaA is by far the most enthusiastic spin-off, according to a review of spin-offs of the world's biggest drug companies by Evaluate Vantage.
    in the past decade, it has built nine young start-ups, though not all of them still exist today.
    as early as 2012, Merck's biotech division, Merck Sherano, pledged to provide seeds to a number of companies after slashing costs and restructuring its research and development division in Geneva.
    This led to a series of spin-offs, which included Asceneuron, Calypso Biotech and iOnctura, which are still in the early stages of development;
    break-up could revitalise the business, with more investors involved in driving the formation of new companies, and the definition of "break-up" becoming slightly more complicated with the emergence of venture capital firms interested in those "splitting" companies.
    a decade ago, the "break-up" was largely driven by the parent company, which would fund and staff the new company and, of course, often bring in external partners to finance it.
    In the case of Vila Bio, chief executive Bing Yao, who was originally head of astraysm, inflammation and autoimmune (RIA) innovative medicines unit at AstraZeneta Healthcare, was later appointed to lead the start-up, together with several other AstraZeneta employees;
    , Albireo and Entasis have adopted similar operating models.
    , start-ups like Impact Biomedicines were set up to continue developing the cancer drug fedratinib, which Sanofi has abandoned.
    the company's founder, John Hood, a co-inventor of the drug at Fedratinib, founded Impact Biomedicines in 2016 after hearing that Sanofi had abandoned the development of Fedratinib, taking back development rights from Sanofi for almost no cost and obtaining $22 million in financing from venture capital firm Mediaxi.
    the latter is a strong supporter of the so-called "asset-centric" investment model.
    as for Sanofi, although it retains a stake in Impact, the formation of Impact was driven by outside forces.
    view, the new companies that are now being spind off have more participants and forms of development than ever before, especially attracting the attention of investors.
    is "dismantled" does not mean that it no longer has investment value.
    , splitting a business that doesn't fit the company's strategy into a separate company might be a better way to revitalise that part of the business.
    , that doesn't mean investors should rush to support the spin-off of big drugmakers.
    39 companies in the data already have products on the market, there are few real business success stories.
    table below lists notable spin-off companies, most of which have spent years achieving their current results.
    Chart 2: Partial Spin-off Success Story Source: EvaluatePharma, China Health Industrial Capital Research Center in general, in the focus on becoming a global pharmaceutical industry trend, for pharmaceutical companies, after the split easy to get on the fast horse whip is actually a good idea.
    and is currently influenced by policy and other factors, the valuation differentiation between innovative pharmaceutical and generic drug companies has intensified, and the focus on "innovation" in particular can lead to higher valuations in the capital markets.
    for the new company that was taken apart, being independent could reawaken the new dynamics of the section.
    : 1, Big pharma spinouts grow up.
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