In the last decade or so, strategic alliances and partnerships among pharmaceutical and biotech companies have doubled to around 700 per year per sector, although most of this increase came in the early years. Even though all big pharma companies have a good selling and marketing capacity, many alliances are created to optimise the commercialization of products, for example, through targeting different segments, marketing with synergistic products or in particular territories where a firm is stronger than the originator. Various forms of strategic partnerships such as collaborative research, contract research, co-production agreements, co-marketing arrangements, cross-distribution arrangements, and technology licensing are being utilized for capacity additions, brand acquisitions, marketing channel integration, and R&D integration, depending upon the focus of a firm. Indian firms are forking out contracts, alliances, and are entering into outsourcing deals where they lack strategic capabilities. But a few firms are looking to build long term capabilities and entering into Research and Development alliances.
