Biotech-Pharma Collaboration-A Strategic Tool: Case Study Of Centocor

Collaboration is one of the key strategic tools for pharmaceutical and biotechnology companies, being used to enhance a company’s research and development, product portfolio, and marketing channels. Using Centocor, a pioneering American biotechnology company, as a case study, this chapter highlights how vital alliances can be to both the initiation and survival of start-ups. As it shows, alliances can provide an important channel for securing products for development as well as funding for getting them to market. The near collapse of Centocor when it switched from a policy of collaboration to going it alone in the development of what they thought would be a blockbuster drug is a salutary reminder for entrepreneurs considering what path to take in building a company.