Valeant Pharmaceuticals has found a successful approach to new drug development. The developer cut its R&D budget in half and used the savings to go out and buy new drugs advanced by other biotech companies.
The Wall Street Journal takes a close look at the unusual strategy, noting that a group of analysts are skeptical. The R&D effort at a developer is considered crucial for long-term success in biotechnology. But it's hard to argue with the results. Valeant's shares are up 60 percent in a brutal market.
R&D "is a high-risk bet, and the fact is we fail more often that we succeed," Robert Ingram, Valeant's lead director, tells the WSJ. "Rather than invest in a high-risk bet," he says, "we will be smart through acquisition and licensing." And there are signs that others in the industry are also buying into the strategy, finding that buying a late-stage therapeutic is less risky and less expensive than trying to do it yourself.
- read the article in the Wall Street Journal