Dear BioChef…it has been several weeks since my last post with the intervening time filled with excitement, betrayal, and reflection.

OK, that was a little therapeutic, and today is a new day.

No posts about any specific stock(s) today, not even after news of $UTHR’s Phase III FREEDOM C(2) trial missing its primary endpoint (again) and desire to file – surprise!

While many things can and have been said about biopharm and the drug development process: blockbuster drugs and pharma’s patent cliffs, billion dollar molecules and annual price-tags of $400,000 per patient, the challenges of drug reimbursement and health care reform, sales/marketing driven management teams vs research/development-driven management teams – what I am thinking about today is a Chorus of companies, spun-out or out-licensed from BioPharm, as a result of their need to “focus”.

Shouldn’t there be some seeds of innovation being planted today that might be ripe for picking a few years from now?

If pharma is down-sizing, becoming “more efficient” and focusing on “core therapeutic areas,” then there should be to be a pretty rich group of assets that could be out-licensed. Of course, the interesting assets are those programs that have demonstrated some signs for clinical success, has targeted a novel pathway or indication, or perhaps has robust biomarker data. If we add-in a talent-pool of laid-off biopharma folks, the wheels of progress can continue to turn.  So, what’s missing? Right…getting investors and entrepreneurs interested in the assets, to provide the grease that allows the wheels to turn.

I’m sure there are many examples to study, but must admit, can’t think of any off the top of my head right now. Hope to be back soon with examples of successful out-licenses/divestures to biotech. Wonder if $AEGR lomitapide counts…they licensed the asset from UPenn, which got it from Bristol. Hmm. A single, single-arm trial for regulatory approval.  You tell me, what are the odds of success here?

While this ends a bit shorter than I had expected, the question remains, will we see more products discarded from pharma in advanced stages of development 3-5 years from today?