Most biotechs strive to get a lead molecule into the clinic at all costs, building a clinical development infrastructure to establish product value, make the firm more attractive as an in-licensor, and in many cases help create a niche franchise. Discovery-oriented Vertex Pharmaceuticals Inc. , however, has long adopted a contrarian risk-reducing alliance model. It has sought to maximize the number of programs it can put into drug development, largely through partners--often to the dismay of Wall Street, which sees a strategy rooted in outlicensing of promising preclinical compounds as giving up value too early. To make up for the value it sacrifices by foregoing full commercialization, as well as the risks that its partners might slow development of Vertex programs, it generally insists on full control of the discovery end of R&D. (See "Vertex Sells Productivity," IN VIVO, June 2000 Also see "Vertex Sells Productivity" - In Vivo, 1 June, 2000..)
The biotech's 2000 deal with Novartis AG covering the R&D of drugs against kinase targets extended that control into clinical proof of concept. [See Deal] It called for...
