The Biotech Industry Is Reorganizing Due to New Partnering Agreements

June 16, 2012 by  Filed under: Management 

There are many advantages in creating partnerships through various development and licensing agreements especially between biotech and pharmaceutical industries. First of all, the much needed supply chain is further enhanced, becomes more reliable and is more sustainable in the long run. With the increasing demands coming from different healthcare industries, getting into new partnering agreements is the most practical step for any biotechnology industry organization and large pharmaceutical company.

However, if there is any issue with these new partnering agreements it is the most common issues that any company would encounter in entering into mergers or consolidations. Both parties will have to reorganize in order to accommodate the additional workforce and align all necessary tasks and positions as well. Many departments in both companies will be greatly affected. Redundancy will have to be avoided in order to avoid the increasing unnecessary cost of operations and administration. This issue will definitely risk the stable employment of many employees in both companies as well. Top management executives will have to be reassigned or let go in order to avoid leadership and management issues as well. There is a great chance that even employees in rank and file will go through the same realignment if not lay off. It is possible that the employees of these companies may have to settle for pay cuts if not for a good severance pay.

However, this collaboration could definitely be a great advantage for both companies in the long run. Aside from adjustment in the organizational pipeline, the reorganization can prove to be a competitive edge in the future. Corporate partnership of both the biotechnology industry organization and the pharmaceutical industries is in the end a breakthrough not just for both industries but for the healthcare industry as well. As research and development is more focused at producing new drugs or medicine and the marketing and sales forces have a direct line to the supply of these healthcare supplies, drugs, medicine and other medical products, the healthcare industry will find a better way to meet the demands of the public at large. Changes in-laws, regulations and other policies pertaining to healthcare need not be a big issue if supply is available and competition is active in the market. Everybody including the bio-technological companies, pharmaceutical companies and healthcare industries and providers can lower the cost of providing healthcare products and services to everyone in the country and even all over the world.

If you are just starting in the industry, it is important to get to know the biotechnology industry organization before making acquisitions.

Article Source:
http://EzineArticles.com/?expert=Jerry_O_Smith

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