For years, pharmaceutical and biotechnology companies have been sceptical of involving other companies in their research. But, that notion is slowly changing. With cost effectiveness and duration of research becoming critical to the commercial success of a product, collaborations with other companies and academic research institutions have become the need of the hour.

“The industry is moving towards a model of strategic partnership,” said Patrick Keohane, vice president, R&D, AstraZeneca-Asia Pacific, USA. With Asia emerging as an attractive destination in the last few years, the company said it has slimmed down its operations in Europe and the US in terms of sites and workforce. “We are focusing on re-investing in places like India and China,” said Keohane. To grow its India operations, the company has entered into tie-ups with Indian companies like Jubilant Organosys and Torrent Pharmaceuticals, and is looking to enter more collaborations in India.

Same is the case with most of the major pharma companies in the world. Around 63 per cent of Merck and Co’s revenues in 2009 was attributable to alliance products and patents. Moreover, the company has also entered into alliances with academic institutions like Harvard University and Imperial College, London.

Rikke Festersen, head-R&D, Novozymes South Asia believes that innovation through partnership is becoming a preferred model in business. “There should be a mutual profit sharing based on funding, ideation, technological contributions and overall risks,” said Festersen. The Danish company, which has an R&D presence in Bangalore has 6,000 patents to its name. The company has entered into partnerships with Indian academic institutions in 2009-10 for three projects.

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