he says, many of the issues that preoccupy the small biotechnology firms—finances, general manage­ment, regulatory staffs, and the like—do not matter to the large com­pany. "They will ask themselves one simple question," Fildes says: "What is this company's scientific capabil­ity?"

Potential acquirers also will base their decision on a small firm's prod­uct line, he says. Some will look for products that fit and can extend their current business areas, as Bristol-Myers did in acquiring Genetic Sys­tems. The aim there, many agree,

Although the small biotechnology companies that started up during the past decade still gain most of the publicity, it is the large, estab­lished pharmaceutical companies that continue to dominate biotech­nology-related patent activity in the U.S., according to Omec Internation­al, a Washington, D.C., consulting firm. Omec's analysis of patents is­sued in 1985 in the biotechnology field also show U.S. corporations broadening their share of the pat­ent picture at the expense of for­eign concerns. U.S. universities, too, are gaining an increasing number of patents.

According to Omec, the U.S. Pat­ent & Trademark Office issued a total of 1078 biotechnology-related patents in 1985, compared with 1114 in 1984 and 1018 in 1983. U.S. com­panies, universities, organizations, or individuals accounted for 640 of them, compared with 663 in 1984 and 562 the year before that. Of the U.S. total, 489 patents went to cor­porations, well up from 441 a year earlier and 400 in 1983. U.S. uni­versities were awarded 86 of the patents, up from 1983's 68 but be­low the 95 in 1984. However, Omec points out, the 1985 calculation does not include patents issued to non­profit organizations on behalf of universities. Adding those would bring the 1985 academic total to 98. The remaining portion of the U.S. total, 65, was accounted for by non­profit groups, government agencies, and individuals. That figure has fluc­tuated: 127 in 1984 and 94 in 1983.

was to bolster Bristol's existing busi­ness in anticancer products. Others will buy to diversify into new areas. One example is the Hybritech ac­quisition, which gave Lilly entry into the diagnostics arena.

The small biotechnology compa­nies must consider the possibility of being acquired from a different perspective, Fildes notes. "How can companies resist?" he asks. "Or, when should they?"

"If your object is to increase the return to your shareholders, you must ask the question of whether you should resist at all," he says. "I

Although down from an impres­sive 45% of all U.S. biotechnology-related patents in 1983, the share of such patents awarded to foreign en­tities remained a significant 41% last year. Foreign corporations domi­nated the segment, winning 363 U.S. patents in 1985, compared with 371 in 1984 and 383 in 1983. Foreign universities, nonprofit organiza­tions, government agencies, and in­dividuals received 75 patents last year, compared with 80 the year before and 73 in 1983.

The largest number of patents went to major pharmaceutical houses. Eli Lilly led all firms with 28 last year, followed by Miles Laborato­ries with 19, Boehringer Mannheim with 14, Merck with 13, and Pfizer with 12. Of 32 firms receiving five

don't think you can resist too easily anyway. If somebody is determined to get you, there are ways to do it."

On the other hand, he says, large corporations realize that an un­friendly acquisition would not work, because the "powerhouse" of the small companies is their employ­ees. Current wisdom holds that most of them would either not wish to work for a large corporation or would wither outside the more free­whee l ing climate of the small , entrepreneurial companies. "If you can't keep the people," Fildes says, "you've bought nothing." D

or more biotechnology-related pat­ents in 1985, only four were small biotechnology operations.

Japan continued to dominate for­eign patent activity in 1985. Of the 438 U.S. biotechnology-related pat­ents issued to foreign entities last year, 178, or 41%, went to Japan. The next closest country was West Germany with 73 patents, or 17% of the foreign total. Other countries with more than 10 patents were France with 33, the U.K. 32, Cana­da 20, U.S.S.R. and Soviet-bloc na­tions 15, the Netherlands 14, Italy 11, Sweden 11, and Switzerland 11.

The most prominent universities in the area last year were the Uni­versity of California system with 14, the University of Minnesota six, Stanford six, and Cornell, MIT, and Purdue four each.

David Webber, New York

American corporations gain larger share of biotechnology-related patents issued in U.S.

Foreign nonprofit organizations, government agencies, individuals,

universities

U.S. corporations

Foreign corporations

1985 total = 1078 patents

Source: Omec International

U.S. universities

U.S. nonprofit organizations,

government agencies, individuals

Foreign corporations

1983 total = 1018 patents

Drug firms dominate biotechnology patents

February 24, 1986 C&EN 17