11/2/11

Underdogs Fight for their Share



Every industry has its underdogs. An interesting fact about the pharmaceutical industry is that the biggest and most prosperous companies only hold a small percentage of the total market share. Also, the pharmaceutical industry is one that is host to many small venture companies that all introduce new and innovative concepts, ideas, and technologies to the playing field, and consequently, when added together they make up the large majority of the market.

Archemix is one of those small companies that have recently made a big footprint. It is a small Massachusetts based company with less than one hundred employees and a small building, but it is newly emerging on the radar that big players like Baxter International and Eli Lilly are beginning to pay attention to. Archemix has raked in over $100 million in sales and development pacts. The company has a simple strategy that is focused on “company's platform aptamer technology--synthetically-derived oligonucleotides, or short nucleic acid sequences, that bind to protein targets--to provide new therapeutics to advance for rare hematological disorders” and to work with big companies such as Eli Lilly, which have big connections and resources to help smaller companies like Archemix.

Another new emerging company in the industry is Intradigm. Recently they have merged with Silence Therapeutics to provide innovative RNAi treatments to heal and prevent serious diseases. Their business strategy revolves around the building, protecting, and commercializing RNAi therapeutics. Silence/Intradigm have a strong portfolio of intellectual property, owning over 200 patents. Currently they hold a market cap of over $20 million and this number is expected to climb as innovation soars.

Overall, big pharma companies may have brilliant marketing strategies and patents to blockbuster drugs, but small emerging companies have the clean ethics record, motivation, and innovative creativity, which attributes to their overwhelming total market share.

-Djeki Bidjerano

Sources:

http://www.fiercebiotech.com/pages/emerging-drug-developers

http://www.archemix.com/website/products.php

http://www.genomeweb.com/rnai/silence-merge-intradigm-bid-create-top-rnai-drug-delivery-player

http://www.fiercebiotech.com/special-reports/emerging-drug-developer-archemix

http://www.fiercebiotech.com/special-reports/emerging-drug-developer-intradigm

4 comments:

  1. Wow, I had never even heard of the companies that you brought up in the post, Jake. Would you mind explaining the RNAi treatments though? I'm at a loss for what they are. I'd also like to know a little more about how Archemix made that huge a revenue chunk with there treatments. Do you have that info?

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  2. RNAi treatment is short for RNA Interference treatment. Basically, the main idea of RNAi treatment is removing or "turning off" a certain gene in the RNA. This is a huge breakthrough in the pharmaceuticals world because it will lead to fast new innovative drugs that will be safer. Archemix is one of the pioneers of this new type of treatment.

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  3. Based on what you say here I wouldn't be surprised if one of the big companies tried to buy out Archemix. Especially when things like RNAi could be used to fill their product pipe line

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  4. That sounds like a pretty incredible treatment to me. If it's actually successful and viable market options I would not be surprised to see a bidding war go down between the big players in the industry.

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