SOURCE: Cutting Edge Information

October 15, 2008 08:18 ET

Cutting Edge Information Study Finds That External Market Factors Are Top Cause of Deal Failures

RESEARCH TRIANGLE PARK, NC--(Marketwire - October 15, 2008) - New research explores the top reasons that pharmaceutical deals fail and offers solutions to prevent agreements from collapsing. According to the study, "Pharmaceutical Alliance Management," 43% of pharmaceutical companies have had a deal fail due to market factors outside of their control (www.PharmaDealMaking.com).

Whereas the top two reasons for deal failure -- external market factors and unfavorable scientific findings -- are largely out of the hands of partner companies, almost every other reason for unsuccessful deals can be directly or indirectly tied to alliance management. For example, another top reason for deal failure is that unrealistic goals are set by one or both partners. This and other causes of deal failure are best addressed through meticulous alliance management, according to the study.

"Is it reasonable to think that every deal a company ever enters into will be a complete success? No," says Eric Bolesh, lead author of the report. "But what we do want to ensure is that those factors that are within our control are thoroughly addressed, and that expectations on both sides of the fence are managed appropriately."

The insights within "Pharmaceutical Alliance Management" prevent deal destroyers, giving guidelines for effective partner communication and internal coordination to ensure continuous alliance satisfaction. More than 50 companies contributed to the study, which contains 150+ metrics, including:

--  Resource support for alliance management groups
--  Prevalence of dedicated alliance management functions, by company size
--  Levels of historical deal satisfaction
--  Underlying reasons for unsuccessful deals
--  Key deal challenges
--  Inbound deals: functions involved in post-deal day-to-day activities
--  Outbound deals: functions involved in post-deal day-to-day activities
--  Use of alliance health surveys
--  Tools of the alliance health department
--  Surveyed companies' communication models
--  Steps to partner-of-choice status
    

For a complete licensing picture, Cutting Edge Information also offers "Pharmaceutical Alliance Management," bundled with "Business Development: Accelerating the Deal." Together these reports provide guidance and benchmarking figures from the beginning stages of licensing -- deal identification and due diligence -- through complicated deal negotiations and the ever difficult task of alliance management.

For more information on the new alliance management study, as well as the recent business report, please visit www.PharmaDealMaking.com.

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