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This article considers the determinants of the corporate acquisitions made in the American pharmaceutical industry between 1978 and 2002. We seek to evaluate the robustness of the “pipeline gap” hypothesis through a larger, more exhaustive sample, and extend it to patent data. In line with the pipeline gap hypothesis, estimations from a Cox duration model show that the Tobin’s q exerts a negative in?uence on the decision to acquire another pharmaceutical firm. On the other hand, several indicators of patent quality have a positive in?uence, indicating that acquiring firms also have a significant innovative potential. Classification JEL: L13, L65