Older, established drug makers continue to rely on the development of new products to replace those which are being opened to generics or are generally used by expiring patients. Meanwhile, venture capitalists are taking advantage of the situation by developing strong relationships with the “Big Pharma” companies.  

In 2007, venture capitalists spent $9.1 billion on privately held U.S. companies working towards discoveries they could sell to large drug makers. Biotechnology companies have the advantage of long-term patents and innovative science that makes it difficult for large pharmaceuticals to compete.

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