In addition, Tier 2 and 3 companies often need to broaden their technology bases through alliances with each other. For example, most public genomics companies have tapped into new technologies developed by private genomics companies. The consolidation of pharmaceutical companies has led to broader product lines and large sales forces globally. It is increasingly difficult for most biotechnology companies to become fully integrated so as to compete directly against the pharmaceutical powerhouses. Therefore, early-stage biotechnology companies are seeking marketing partners.
Pharmaceutical companies remain the dominant partners for biotechnology companies.
Essentially all of the major pharmaceutical companies have alliances with biotechnology companies. Genomics and drug discovery are popular areas for alliances. New alliances centering on drug delivery fell to 14 in 1999, a sharp drop from the 67 reported in 1998 and 48 in 1997. The decline reflects consolidation in the area. NeXstar Pharmaceutical by Gilead , Fuisz Technologies by Biovail , Advanced Inhalation Research by Alkermes , and PolyMASC by Valentis .