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German Merck to seek cost-sharing deals for drug development: FT

  • In an effort to reduce the cost of developing new drugs, Merck KGaA (MKGAF.PK) is taking an unorthodox approach.
  • The company is looking to partner with "external investors" such as private equity groups to "share the cost of testing experimental medicines," FT says.
  • The move comes as the industry tries to juggle what appear to be competing goals: 1) Boost productivity and 2) cut research expenditures and return cash to shareholders.
  • Merck has narrowed its focus to oncology and immunology as part of a "pipeline resurgence," while the company's head of pharmaceutical and consumer health Stefan Oschmann looks to "create smaller, more entrepreneurial 'biotech-industry' style units within the company in which scientists have greater flexibility and financial incentives."
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