A Shifting Paradigm?
I’ve just returned from Brazil, where I spoke at the BioPartnering Latin America conference about the value of alliances across industry and nonprofit groups in addressing global health needs. What struck me about this meeting—and those who attended—is the increasing acceleration of interest in and commitment to partnerships in the emerging market countries by large pharma and biotech companies.
The attendance at this meeting was virtually a who’s who of Big Pharma—Merck, Astra Zeneca, Pfizer and many other big companies, as well as biotech companies like Genzyme—that are all looking for partnership opportunities. One of the companies’ goals is to have 25% of total sales come from emerging markets within five years (from 5% only a few years ago and 15% today).
What is clear is that Brazil specifically, and the emerging markets in general, represent far more than just a “market” or revenue opportunity. In addition to their growing economies, many of these countries offer patient populations for clinical trials (as the U.S./EU areas become saturated and harder to identify qualified and willing patients), infrastructure generally and manufacturing specifically, rising awareness and protection of intellectual property, and increased willingness to apply resources (read: money) toward not only purchasing, but also researching and developing new therapies, vaccines, and diagnostics.
This interest in emerging markets — as the developed world markets reach peak maturity and pipelines (for now) are not as productive as industry would like — is of course not new. And the enhanced capabilities in these countries are not as fully developed as both locals and big companies would prefer, but the trend is clear, and continuing.
From BIO Ventures for Global Health’s point of view, we see this momentum as very positive, in two respects. First, the rising clout of emerging markets speaks well for the increasingly close relationships of industry with partners in these countries. Second, and more importantly for our mission, these relationships can provide an increase in resources, opportunity, and awareness of neglected diseases in these countries. In relative terms, these are much larger problems than in the developed world and can become higher priorities in the developed world. In other words, as we grow closer, our partners problems become our problems.
At the Brazilian conference I attended, words like “innovation,” “world-class science and technology,” and “partnering” (as opposed to more one-sided relationships) were the words of the day. Sounds like a typical U.S., European, or Japanese partnering session. This can only be beneficial for the global health needs of patients in emerging countries and their neighbors as relationships grow, mutual needs are exchanged, and solutions pursued.
- Don Joseph
Chief Operating Officer, BIO Ventures for Global Health
About BIO Ventures for Global Health
BIO Ventures for Global Health is a non-profit organization whose mission is to save lives by accelerating the development of novel biotechnology-based drugs, vaccines, and diagnostics to address the unmet medical needs of the developing world. The organization spurs biotech industry involvement in global health product development by increasing biotech and global health partnerships, designing and advocating for compelling market-based incentives, and synthesizing and disseminating critical information and quantitative analysis. For more information, please visit http://www.bvgh.org.
