Often, large multinational corporations exhibit vertical integration, participating in a broad range of drug discovery and development, manufacturing and quality control, marketing, sales, and distribution. Smaller organizations, on the other hand, often focus on a specific aspect such as discovering drug candidates or developing formulations. Often, collaborative agreements between research organizations and large pharmaceutical companies are formed <answer>to explore the potential of new drug substances</answer>. More recently, multi-nationals are increasingly relying on contract research organizations to manage drug development.
Why are collaborative agreements important?
to explore the potential of new drug substances