With most Big Pharmas facing a steep and costly patent chasm and in-house R&D failing to produce the necessary bridge to patent-challenged franchises, companies have been forced to look for new sources of innovation beyond traditional in-licensing and acquisition. As a result, some drugmakers are looking with renewed interest at the innovation housed in universities. The tie-up between Johnson & Johnson and Vanderbilt University is just the latest example of this important trend.

Shionogi offers strong pipeline, Sciele brings 770-strong sales force to Japan-U.S. pairing.

Takeda Pharmaceutical's drug business started out manufacturing and selling bismuth-the basic ingredient in Pepto-Bismol--in 1895. A century later, it's still chained to the stomach-settling game with Prevacid, a $1.4 billion drug whose patent will expire in 2009, taking with it a huge percentage of Takeda's earnings. That's one big reason why Japan's largest and most international pharmaceutical company is on a US-focused dealmaking tear. Since February, Takeda has inked three major licensing partnerships and completed the largest acquisition in its history in a desperate attempt to shore up a thin pipeline.