An interesting deal between GlaxoSmithKline and Noartis involved a drug swap.  GSK got drugs related to vaccines and Novartis got cancer drugs. Both companies got drugs they were best at selling and promoting.

For a while, drug companies have been boltstering their roster of strengths by the acquistion of small companies that have successfully developed a drug in their field of specialty.  Merck is to buy Idenix, a biotehnology firm.  More than 70% of the productts of the best performing drug companies are not deeloped in house.

The drug business now models itself on the motion picture business.  You invest when the product appears ready to go.  Will drug companies now meet with startups and discuss their own needs and help the start up deliver them?  Marketing and distriution.  This is Hollywood’s sucessful model.