• Cincinnati Enquirer, Tuesday, May 15, 2007 11:16 AM

Known for generations for its suds-producing products, Procter & Gamble was a looming presence at a big biotech conference in Boston last week. It was selling one thing: Procter & Gamble Pharmaceuticals ability to develop and market drugs conceived by small research companies.

Building these alliances follows P&G's decision last summer to abandon the drug-discovery business--costing about 300 researchers their jobs--and instead focus on partnerships in key areas, including women's health, gastrointestinal disorders and muscular/skeletal treatments.

Since then, P&G has signed one licensing deal--with Aryx Therapeutics-- to commercialize a treatment for gastrointestinal problems. With many larger pharmaceuticals companies pursuing a similar licensing strategy, there aren't many potential blockbusters out there waiting to be signed. P&G's challenge is to find a middle ground between being too ambitious and too cautious.

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