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The J&J/ Vanderbilt Tie-Up: Accessing Innovation On The Cheap

With most Big Pharmas facing a steep and costly patent chasm and in-house R&D failing to produce the necessary bridge to patent-challenged franchises, companies have been forced to look for new sources of innovation beyond traditional in-licensing and acquisition. As a result, some drugmakers are looking with renewed interest at the innovation housed in universities. The tie-up between Johnson & Johnson and Vanderbilt University is just the latest example of this important trend.

With most Big Pharmas facing a steep and costly patent chasm and in-house R&D failing to produce the necessary bridge to patent-challenged franchises, companies have been forced to look for new sources of innovation beyond traditional in-licensing and acquisition. This "leave no stone unturned approach" has resulted in some drugmakers reevaluating the stones that might be found on the tree-lined campuses of academia.

Once rare, drug-discovery partnerships between industry giants and academic institutions have enjoyed a renaissance in recent years. Among the notable...

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