Why do biotech firms need to explore licensing opportunities?

According to data captured by Cortellis Competitive Intelligence, there were greater than 4000 Pharma and Biotech transactions in 2017 alone – 45% of which were licensing deals representing a total value of nearly $70 Billion. For the majority of these deals the sell side company was a US based firm, with EU firms representing nearly 25% of the sell side companies.

Finance.

The hot areas of interest not surprisingly continue to be in Oncology, Neuroscience, and Immune / Inflammatory Disease. Upfront cash obtained in these transactions averaged $35M with a median upfront of $10M, demonstrating that this type non-dilutive financing can be useful for development stage companies to fund their operations and further their pipelines.

While the majority of these deals were transacted for discovery stage assets, late stage and launched assets made up more than half of the remaining deals. Late stage deals are often used by companies to broaden their brand awareness on a global level, provide economies of scale for reduction of costs for product manufacturing, and generate additional revenue streams that alleviate the burden of financing.

While the majority of these deals were transacted for discovery stage assets, late stage and launched assets made up more than half of the remaining deals. Late stage deals are often used by companies to broaden their brand awareness on a global level, provide economies of scale for reduction of costs for product manufacturing, and generate additional revenue streams that alleviate the burden of financing.

Contact us.

KYBORA’s team understands these market trends well and is uniquely positioned to provide guidance to biotech companies on how they can meet their licensing objectives and achieve long-term success.