GREY:BIOAF - Post by User
Post by
neinsteinon Mar 12, 2014 3:28pm
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Post# 22315368
Licensing deals
Licensing dealsit's my understanding that many licensing deals announced are not always what they appear if you were to simply take for granted the initial press release. specifically the upfront dollar amounts. these 'large' payments are rarely actually a simple transfer of cash up front, but are tied to studies that need to occur long before we see the 'milestone' payments and of course royalties which come further down the road.
the inital studies look at certain variables such as dosing, efficacy, survival, etc. (i'm sure i've missed many)
as such i though it would be interesting to get some discussion going about what type of structures we could see and which structure(s) we believe to be the most attractive to BTI. maybe it's less money upfront and more money if and when a study de-risks the situation.
for example i believe the efficacy study is usually the most important. we have no idea what the collaborations have have tested. if they have not yet tested efficacy i would think the pharmas' willingness to part with substantial funds upfront will be somewhat muted.
it seems to me that if BTI is confident of proving efficacy once it enters into licensing arrangements, that it would be in BTI's best interest to accept a lesser amount upfront, but to ensure an efficacy study is completed within a reasonbly short time period. that is of course if BTI can negotiate the timeline and progression of studies post arrangement.
any thoughts, opinions or experience on this subject?