Merck Recognized as Top Pharma Partner in Industry Survey

Merck topped the Boston Consulting Group (BCG) 2010 biotechnology licensing survey results, beating out competitors as the best overall pharmaceutical partner. Presidents, CEOs and business development heads surveyed throughout North America, Europe and Asia gave Merck top marks when averaged across various partnering categories.

"The BCG survey results are reflective of how seriously we take the relationships we have with our partners, and how strong our capabilities are," said Barbara Yanni, vice president and chief licensing officer at Merck.

The fourth-edition survey was sent to senior-level executives involved in licensing or business development.

"Merck set the bar for the best-in-class scores," BCG researchers noted in the summary of their findings.

In 2010, Merck reviewed thousands of partnership opportunities, eventually resulting in 46 significant licensing and partnership deals. Among Merck's key areas of interest are:

• Atherosclerosis and Cardiovascular Diseases
• Biologics
• Diabetes and Endocrinology
• Infectious Disease
• Neurosciences and Ophthalmology
• Oncology
• Research and Enabling Technologies
• Respiratory and Immunology
• Vaccines

Yanni said that Merck's licensing and alliance management teams were extremely pleased with the results of the 2010 survey, and mentioned that Merck has done well in previous years, consistently improving since the first BCG survey in 2003. (Merck ranked sixth overall in 2006 and third in 2008.)

According to the survey summary, Merck's effective communication of its partnering capabilities has lead to its continuous improvement since 2006, improving along all key partnership dimensions, and showing high levels of positive perceptions.

Bringing Value and Helping Partners Succeed

The partnering landscape continues to be increasingly competitive and difficult economic times have raised the stakes further. More than ever, biotech companies are focusing on creativity and flexibility of potential partners, as well as their ability to bring value through strong clinical capabilities, marketing and sales expertise, and regulatory capabilities.

"Biotechs are most interested in a partner that can add value to their company," Yanni said. "We know we have to be very flexible with how we structure deals. Part of the negotiation process is determining the needs of both parties."

Since 2003, BCG has invested in studying the relationships between supply and demand in biopharma licensing. The company has evaluated the attributes of ideal partners and surveyed top executives at the largest biotechs to identify which pharmaceutical companies are living up to or exceeding expectations.

The biopharma industry relies greatly on partnerships to help expand research and development pipelines. Collaborations have become key to drug discovery and development, and large pharmaceutical companies like Merck are always seeking opportunities for growth.

According to Merck, the right timing and terms are critical to such opportunities, as are the people behind the deals. As the company continually evaluates its pipeline and refines its areas of interest, worldwide scouts build relationships and identify opportunities, and alliance managers forge and monitor the progress of partnerships.

"Merck has proved time and again that we can provide our partners with what they need to move their product forward and help us achieve success together," Yanni said.

Since the last BCG survey in 2008, the industry has been battling pipeline and valuation pressures, droughts in funding and increased challenges in regulatory and commercial landscapes. The 2010 survey proved that partners are looking to deliver maximum value with an increasing emphasis on commercial capabilities to bring a drug to market. Partners aren't interested in companies that offer the highest price, but rather they want a company that has the best chance of helping them achieve the best outcome for their product or program.

Yanni believes Merck's flexibility and commitment to continually improve processes contribute to its current success and bright future in biotechnology partnerships. She added, "We are dedicated to meeting the needs of the partner and being open about our needs. Transparency and reciprocity have helped us make and close deal after deal."

Merck's Overall Ranking on BCG Survey 2006-2010