Some of the world's largest pharmaceutical companies have indicated that they are interested in partnering with innovative biotech companies that are looking for business capital.

The indication of interest is good news to small biotech startups, which may face a money crunch during the expensive process of financing clinical trials.

"For a small company, it's really not practical to do that alone," said Nina Ossanna, senior director of business development for Tucson-based ImaRx Therapeutics. Ossanna, quoted in the Business Journal, also indicated that ImaRx is itself in early-stage discussions with a couple of large pharmaceutical companies.

Drug giants benefit from the flexibility and creativity of the smaller companies. According to the Journal, Pfizer prefers partnerships over acquisitions because technology could be obsolete by the time it is acquired.

Pfizer's global head of strategic analysis and knowledge management strategic alliances, Ravi Kiron, told the Journal that about 60 percent of Pfizer's drug discoveries come from biotech partners. He estimated that Pfizer spends roughly $250 million a year on alliances.

Kiron said that he seeks out leaders who have reasonable expectations and can communicate clearly with Pfizer executives.

"Be yourself," he said. "Don't overextend what you can do, and don't underestimate what we can do for you."

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For more information:

"Drug giants poised to fund local biotech companies," Business Journal, 02/16/2004 

Tucson firms begin clinical trials, 09/25/2003