Big Pharma's Loss May Be Biotech's Gain

From Reuters.com:

"LONDON, Oct 13 (Reuters) - Current problems besetting 'big pharma' could have a silver lining for the smaller biotechnology sector, some investors believe.

Longstanding concerns about the drug industry's profitability have come to a head since the shock withdrawal of Merck & Co Inc's (MRK.N: Quote, Profile, Research) $2.55 billion-a-year arthritis drug Vioxx on Sept. 30 on safety grounds.

The move rocked confidence in the industry's reliance on so-called blockbuster drugs and highlighted the dearth of new products emerging from its research laboratories.

But Antoine Papiernik, managing partner of Paris-based venture capital firm Sofinnova, thinks it could be good news for biotech.
'To me, Vioxx is the best news of 2004,' he told the annual BioPartnering Europe conference this week.

'It is great news because finally people will realise that niche is good. This will also accelerate the need for big pharma to work with biotech companies to get new products.'"