LES 2009 Spring Meeting

May. 6, 2009-May. 8, 2009
Hyatt Regency Montreal
Montreal, Canada
www.usa-canada.les.org/meetings/2009spring/

Description:

Joe Dillon and Gautam Aggarwal, both of our Business Development Practice, will present a session on deal timing at this event.

Abstract:

When to Out-License?  Deal Now or Deal Later
 
Joe Dillon, Senior Practice Executive, Business Development Practice, Campbell Alliance
Gautam Aggarwal, Associate Practice Executive, Business Development Practice, Campbell Alliance
 
Companies often evaluate and then reevaluate their strategies as a product moves through the several stages of the clinical development process. Often times, out-licensing the asset will be an essential part of this strategy. But when should the company choose to out-license? Continuing to develop a product can be very costly and carry significant risk, but continued development can also significantly increase the value associated with a deal. So, when is the right time and what are the right terms? In this session, we will display the trade-offs associated with pursuing improved deal terms, by continuing to fund potentially risky development. Observations from the 2008 LES Royalty Rate Survey will be used to support conclusions about the value of successfully moving through key development stages. We will also discuss means of mitigating risk through portfolio strategies.
 
Attendees of this workshop will see results from real world examples of product valuation and be given an opportunity to comment on case studies from recent high profile deals.  Attendees will also discuss:
 
  • What factors do I need to consider in deciding when to out-license?
  • What is my risk tolerance? How does the number and status of my other pipeline products affect my risk tolerance?
  • As an out-licensor, how much control do I typically have over when to out-license?

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