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Life Sciences Industry Reaches Crossroad Say Noted Pillsbury Attorneys

sbury's Health Care practice and founder of the Healthcare Technology Network of Greater Washington. Main advocates healthcare clients' interests on Capitol Hill and before regulatory bodies, including the Centers for Medicare and Medicaid Services (CMS) and state health and insurance departments.

Main and Wetherell agree that among the most crucial factors affecting life sciences are:

-- Growth in the pharmaceutical market is expected to be between five and

six percent this year, reaching record sales of $740 billion, according

to the IMS Health's 2008 Global Pharmaceutical Market and Therapy


-- While Big Pharma is reaping huge rewards distributing blockbuster

pills, most new drugs are developed at small, innovative start-ups,

while R&D costs are rising -- to the tune of $55 billion in 2006 alone.

Accordingly, the number of strategic alliances, licensing deals, and

mergers has increased as companies seek new products on shorter


-- Developing the right products is critical for firms requiring approval

from the U.S. Patent and Trademark Office and Food and Drug

Administration. Backlogs in applications make it hard for companies to

recoup investments at a time when novel drugs, diagnostic equipment,

implantable devices and other goods generally must yield sales in the

hundreds of millions to cover research costs. A lengthened approval

process is especially difficult for small companies with limited

funding, who often cannot sustain years of procedural delays.

-- Regulators, including the Federal Trade Commission and the Department

of Justice, are shining light on the industry. Among other

investigations, the FTC is exploring the competitive implications of

deals in which brand-name pharmaceutical companies allegedly

collaborated with thei

SOURCE Pillsbury Winthrop Shaw Pittman LLP
Copyright©2008 PR Newswire.
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