STOCKWATCH: European approval - milestone or millstone?
This article was originally published in Scrip
Executive Summary
In times past, biotechnology companies were relatively naïve on the terms of a deal to license their product to pharmaceutical companies. A good pharma trick used to be to allow the biotech partner to opt-in on the joint development of the licensed product so that lower upfront milestone payments could be traded for a bigger slice of the downstream commercialization pie. Unfortunately as companies like GenMab and Celltech later found (scripintelligence.com, 2 July 2010 and 19 November 2003), this development commitment rapidly became a millstone around their necks and led to renegotiated terms which favored the pharmaceutical company.
You may also be interested in...
Stock Watch: Risk And The Pharmaceutical Discount Rate
In contrast to the SEC’s view that public companies’ regulatory filings give investors all the information needed to make an investment decision, the discount rate used to value a company may not reflect all its risks.
Stock Watch: Pharma Businesses That Leave Consumer Behind
Healthcare conglomerates that divorce consumer, animal health and even generics businesses from their pure-play branded pharmaceutical groups could leave a less diversified and riskier sector in uncertain times. But the advantages are apparent.
Stock Watch: Acadia And Amylyx Trial Failures Were No Shock
The overused phrase ‘pipeline in a product’ translates to ‘disappointment in a product’ when the number of indications in the pipeline contracts towards zero.