With the rise of combination therapy – the use drugs with different mechanisms of action to combat a specific disease state – comes the need to address medical costs and reimbursement issues.  Joint negotiation of package deals with government and health insurers may prove useful, particularly for companion diagnostics and treatment of chronic conditions.  Companies that share drug development risks and costs (preclinical, clinical trials, sales and marketing, etc.) with each other are not only better positioned to negotiate for reimbursement but are also better poised to defend against competition.   Multiple collaborations, however, increase the risk of legal complexity for all concerned.

Source: Reuters

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2 Responses to “Is Pharmaceutical Collaboration an Oxymoron?”

  1. Rahul Khattar Says:

    How do you propose to mitigate this risk.. What if the collaboration comes to a abrupt end. What if somebody leaked the information?

    Cheers
    Rahul

  2. cdavenport Says:

    Rahul,

    Thanks for your response. Presumably both parties have some “skin in the game,” so there is proprietary information shared from both sides. How best to mitigate risks? Use of experienced, well qualified lawyers!

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