The Economist

Billion-dollar babies

Billion-dollar babies

  • November 28, 2015
  • min read

The Economist

Billion-dollar babies

Increasingly, drug giants are buying smaller, younger biotechnology firms that focus on a single-treatment approach. Whether the target firm is big or small, buying in promising potential drugs is a good strategy. A study by Bain & Company found that in the past 20 years, those drug companies that consistently did well in various therapeutic areas were earning more than 70% of their sales from products developed elsewhere.