Licensing and partnerships are key mechanisms for biotech growth amid increasing interest in rare therapy areas, new technologies, personalized medicine and an increasingly fluid deal-making environment.
In our Masterclass: Partnering & Licensing during the LSX Investival Showcase 2021, presenters Randall Sunberg, Oren Livne (New York/Princeton) and Isabella Liu (Hong Kong) share their insights on how biotech companies can navigate these issues and find the right fit for the future.
Key takeaways:
- Global versus regional licensing deals. While global deals tend to be larger and higher profile, regional deals can be more complex, thus the need to consider if they will be accretive to the business in the long-term. Careful consideration is imperative when evaluating the rights to conduct additional development activities and ownership of newly generated intellectual property and data. Amid rising inbound and outbound deals, China is also emerging as a very important market for dealmakers.
- M&A versus licensing. Although different, these deals have similar elements, such as contingent value rights (CVRs) and licensing-style milestone payments. Licensing negotiations can be a segue to future M&A discussions. Due diligence activities should be tailored to the particular deal structure being sought.
- Rise of new technologies. The composition of licensed products is evolving and becoming increasingly complex with the adoption of new technologies. For example, the process for manufacturing cell and gene therapies can merge with the product, and as such, traditional licensing definitions and provisions need to evolve in order to integrate these technologies.
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