Global Pharmaceuticals Relying on Virtual Data Rooms for Data SharingAuthor: Max Odenthal
The pharmaceuticals industry is vastly different to other industries in how it deals with the challenges of cooperation and competition. One the one hand there is immense competition between companies based on their patented drugs, formulations and processing techniques, but on the other hand there is still a definite need to collaborate in order to bring down research and development costs.
This has made partnerships, mergers and acquisitions a fairly common sight in the industry. Collaborating on specialized projects that contain highly sensitive and expensive information is no easy task, especially when both companies tend to be large multinationals that are working on hundreds of other projects simultaneously.
Add to this the strict regulatory oversight imposed on the pharmaceutical industry by governments of multiples countries and there appears to be a need for an organised way of ensuring collaboration is efficient, company secrets are protected and all relevant compliances are met. The data solution that has all the answers and that big pharma companies have started to turn to is virtual data rooms.
Data sharing in the pharmaceutical industry has fallen on virtual data rooms, largely because of their efficiency, ease of use and ability to track and monitor the process of the deal so as to comply with both internal and external regulations. Patents don’t last long and partnerships are often temporary, so data sharing needs to be able to take place in a fast yet secure environment to maximize the benefits of the deal to both parties involved.
Perhaps the biggest drawing card of virtual data rooms for pharmaceutical companies is their intense security and data protection measures. With almost every deal involving intellectual property that costs millions to develop, sharing parts of and collaborating on this sensitive information needs to take place in a secured environment in which user access can be limited and controlled. Virtual data rooms allow both parties to limit how much information is shared based on the progress of the deal so that collaboration is not limited and company integrity is not breached.
The biggest use of virtual data room in the pharmaceutical industry is in accelerating the due diligence process involved in partnering with other firms or in business development and licensing activity. Virtual data rooms open up the possibility of partnerships with firms across borders that operate in different languages, allowing businesses to cast a broader net when looking to expand and evolve.
Once the deal process is initiated, virtual data rooms allow you to control and monitor the access to your company data such as marketing research, clinical trials and regulatory compliance. This means you can share enough information to form a successful partnership without compromising your businesses position, intellectual property and research. In addition, once a deal is struck, you can retroactively revoke viewing permissions so that your data remains secured even after the deal. This allows for the balance between cooperation and competition between firms to be met.
Legally, virtual data rooms ensure that all records of dealings and company activity are stored securely in their multiple data centers, accessible when needed. This is important to meet regulatory requirements and can help the case of your business should it be involved in any litigation of any sort. They also provide a valuable record of past partnerships or past dealings of the business should the business require to view them or make use of them in the future.
Finally, a secure virtual data room can drastically reduce data solutions costs for companies that deal with large amounts of sensitive information, such as pharmaceutical companies. Similarly, expediting the due diligence process in partnerships and providing both parties with an efficient means of communicating can boost current productivity and potentially result in pharmaceuticals being able to expand their business to more parts of the world through an increased number of partnerships. The ability to attract and work with more potential bidders and partners can help businesses reach their full potential by attracting more funding and partners all while knowing that their greatest asset, their data, is being securely protected and shared to the correct extent and to the correct people.