Biopharma Dealmaking and Commercialization Readiness: Time for a Rethink?

Alex Fink, Senior Vice President and Ed Salzman, Senior Strategic Advisor, both with strategic services firm Lumanity, discuss the commercial readiness of biotechs, tackling some hard challenges and myths around dealmaking among these pre-commercial entities. They say that given the crowded nature of companies pursuing multiple therapeutic modalities and targets, with limited numbers of buyers, pre-commercial biotechs should consider commercialize on their own. For example, in 2023, 650 pre-commercial biotechs went into Phase III clinical trials, but the number of those Phase III companies purchased is 2023 was nine.

Fink and Salzman challenge the myth that if a biotech is still unpartnered in Phase III, they have a high-risk asset or a poor quality asset, saying large pharma’s lack of interest is not a sign of a problem asset.

The stress that these biotechs can overcome the challenges of self-commercializing and pursue the path with preparedness.