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Drug Delivery Start-Ups

 
• By Roger Longman

As an industry segment, drug delivery was virtually created by two companies--Alza Corp. and Elan Corp. PLC. These companies have since evolved into drug companies, abandoning a significant part of the field to second-generation arrivistes. Such companies that have survived the funding drought for small-cap companies have benefited, Inhale Therapeutics, for example, has a number of partnerships for its pulmonary delivery technology. Alkermes, probably the leading drug-delivery pure play, now has its first approved product. What is somewhat surprising about the industry is how little it has consolidated, particularly when one considers that no single drug delivery technology is applicable to a majority of drug delivery problems.

As an industry segment, drug delivery was virtually created by two companies—Alza Corp. and Elan Corp. PLC . And for years, those two companies virtually owned the segment. Anyone with a drug delivery problem, who couldn't solve it alone, naturally went first to Alza or Elan. Technologically competent, financially stable, they were partners of choice.

But with their transformation into drug companies, the role of Alza and Elan as drug delivery technology providers has largely...

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