Monday, July 13, 2009

Survey Endorses Longer Market Exclusivity

Study Endorses Longer Market Exclusivity For Drugmakers (read here)

By Brian Gromley

The NationalVenture Capital Association released study results Friday that it hopes will help convince lawmakers that biologic drugmakers should enjoy a long period of market exclusivity before follow-on versions of their products are allowed on the market.

The study says the cost of capital for early-stage biotech companies is over 20%, or about twice as high as policymakers have assumed. This suggests that biologic drugmakers need at least 12 years of market exclusivity to make a return on their investment, according to the NVCA, which commissioned the research.