Early Stage and Discovery Deals: Strategy, Structure and Payment Terms 2nd Edition

February 15, 2007 (Press Release) -- Today early stage partnering is a core component of both biotech and pharmaceutical business strategy, allowing companies to access promising new and emerging compounds and technologies. To become a successful player within the life science industry it is crucial to understand the changing dynamics of the industry’s early stage dealmaking trends. Dealmaking in the pharmaceutical industry is constantly growing; big pharmaceutical companies are forecast to receive around 40-50% of their revenue from in-licensed products by 2010. The balance of dealmaking activity has also moved, from the later stages of development to the early stages, where deals have not only increased in number but value too. For example in 2006 ChemoCentryx signed a potential US$1.5 billion drug discovery and development deal with GlaxoSmithKline. Deal complexity is advancing in terms of both financial reward structures and exchange of non-monetary capabilities. Therefore, to obtain a more rounded understanding of valuation and to achieve the maximum benefits of a deal it is essential to consider non-monetary benefits as well as deal values. The revised edition of “Early Stage and Discovery Deals: Strategy, Structure and Payment Terms” analyzes early stage dealmaking trends and discusses the basics of dealmaking structures, covering payment terms and deal valuations. Updated with new data including case studies from 2006 and contracts this report aims to assist and guide leading professionals involved in business development through the complex process of early stage dealmaking. The report educates readers to the benefits of early stage partnering, offers tips for structuring and maintaining the right deal, examines the current partnering model and provides a complete breakdown of the various payment strategies. Providing an insight into why in-licensed projects have a lower failure rate compared to in-house projects, the report reveals the cost differences between in-licensed and in-house preclinical projects.