Procter to cut jobs at health research center
P&G Pharmaceuticals is eliminating its in-house Discovery program. It wan’t a very large program, but the move represents a major change in strategy for the company, which will now rely solely on licensing and acquisitions to fuel its growth in pharmaceuticals. In a related story, J&J had recently announced its intention to shutter its Raritan Discovery labs, shifting some of those jobs to its Springhouse (PA) operations. Unlike P&G, however, J&JPRD will maintain a relatively large Discovery effort. By making this move, P&G is signaling that it intends to become a larger player in the pharma licensing world. Recent trends have indicated that competition for drug licenses at all phases of development has never been greater, with resultant increases in deal valuations. If you’re a small firm with innovative products or you’re an investor, it’s a buyer’s market. My advice…take your time and choose your partners carefully. Up-front cash is important, of course, but it’s not a measure of a great partner or the likelihood of eventual success in the market. For buyers the advice is similar; be more to your partner than just a deep pocket.
