The year 2006 can be defined by the surge in acquisitions by large pharma of biotechs. A look at the current acquisitions of biotechs by larger pharmas shows a significant dynamic occurring right in front of us. We seem to have entered a phase in which larger companies are buying up strategically important biotechs that enable them to secure either their therapeutic or technological interests. So where does this leave the biotech model as a way of generating innovative drugs? There is both bad news and good news, and the biotech model will change particularly with respect to financing and ultimate share ownership. However, I believe that the biotech legacy is strong enough to ensure that small dynamic entrepreneurial environments are recognised as best for innovation, and that these will survive regardless of who owns them.