BIO CEO & Investor Conference: Being upfront about upfront payments

With today’s economy, it’s important to be upfront about upfront payments in biotech licensing. Since licensing deals allow big companies to fill their pipelines without the upfront work and provide small companies with the capital they crave, a win/win partnership is important.

Today, big pharma is driven by scientific data—often from late phase II clinical trials. And, sometimes one molecule can make or break a deal. For big pharma, it’s not the price that drives a deal; it’s the number of opportunities that may come out of the deal. These conglomerates are willing to pay it forward for hard data and new technologies—especially in areas with an unmet need.

According to both big pharma and small biotechs, strategic partnerships work best and partnerships built on a track record for delivery work even better.

For 2009, big pharma and small biotech executives are optimistic about licensing deals. While sellers might demand upfront cash because of the economy, there is plenty of solid data and attractive molecules to help move deals forward to reach fair market value.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: