This excerpt taken from the NPSP 10-K filed Mar 14, 2007.
We intend to achieve our objective of developing and commercializing our product candidates through the following strategy:
Outsource non-core competencies. We will utilize an outsourcing business strategy in order to effectively control costs while focusing on the clinical development of our late stage product candidates. We will use this model for research and development, preclinical, clinical trials, and manufacturing operations, as well as other functions critical to our business strategy. This strategy will enable us to more rapidly access expertise, technologies, and facilities to optimize each stage of research and development, allocate internal resources more effectively, and manage more effectively initial risks, costs and time to market of our key programs.
Build a diversified pipeline of products addressing a variety of medical conditions. We are developing a diverse pipeline of product candidates that are in various stages of preclinical and clinical development. Our portfolio approach allows us to reduce our exposure to any single product failure and increases our flexibility to focus on our most promising programs. We believe this strategy increases the likelihood that we will successfully develop commercially viable pharmaceutical products.
Collaborate or out-license to reduce our risk and accelerate the commercialization of select product candidates. We believe that collaborating with pharmaceutical and biotechnology companies with clinical development and marketing expertise in specific therapeutic areas will facilitate more rapid entry into the market for certain of our products, accelerate our products acceptance by healthcare providers and third-party payors and enhance our financial flexibility. We selectively enter into collaboration agreements and licenses with pharmaceutical and biotechnology companies for these reasons. This strategy allows us to devote greater resources to proprietary programs and to pursue development of a greater number of product candidates than would otherwise be possible.