VC Bob Nelsen argues that even if large pharma companies appropriate ideas or gain leverage over US biotech, their financial success is ultimately beneficial. Profitable pharma companies must deploy massive cash reserves, much of which flows back into the biotech ecosystem through M&A, funding the next generation.

To foster accountability for external assets, Ipsen integrates its innovation and scouting teams directly into the R&D organization, rather than siloing them with business development. This ensures partnered programs have a natural home and are not seen as competition to internal efforts, preventing cultural friction.

Because their platform generates more high-potential drug targets than they can pursue internally, the company frames partnerships with large pharmaceutical firms as an ethical imperative. This approach ensures novel findings don't languish, allowing them to become life-saving drugs while triggering revenue sharing for their community partners.

Alt-Pep sees its core strength as early-stage science and development across a portfolio of amyloid diseases. The company's long-term plan is to focus on this R&D engine and partner with big pharma for late-stage development and commercialization, rather than building its own sales and marketing infrastructure.

Despite claims of AI driving massive cost savings, industry experts like Eric Topol predict big pharma will not acquire major AI drug discovery companies in 2026. The dominant strategy is to build capabilities internally and form partnerships, signaling a cautious 'build and partner' approach over outright acquisition.

As large pharmaceutical companies shift focus to acquiring clinically validated assets, a gap has emerged in early-stage development. Smaller and mid-sized pharmas, unable to compete on price for late-stage assets, are now incentivized to take on more risk and partner earlier, driving innovation.

When seeking partnerships, biotechs should structure their narrative around three core questions pharma asks: What is the modality? How does the mechanism work? And most importantly, why is this the best differentiated approach to solve a specific clinical challenge and fit into the competitive landscape?

Dr. Saav Solanki observes that many breakthrough medicines don't follow a linear path within one organization. Instead, they are developed collaboratively, often starting in a university lab, moving to a small biotech for initial development, and finally being acquired or licensed by a large pharma company for commercialization.

ProPhet was founded through Ion Labs, a venture studio created by AstraZeneca, Merck, Pfizer, and Teva. This model allows established pharmaceutical giants to identify acute internal challenges and recruit external talent to build dedicated startups aimed at solving them.