Upfront Fees for Preclinical-Stage Biotech Products
Executive Summary
Upfront fees for preclinical stage products in 1994-95 are bigger than those from deals signed in 91-93.
For the second installment of a series of columns devoted to upfront fees in biotech deals, we broke out upfront licensing and equity payments from 22 deals involving products at the preclinical stage—that is, collaborations in which a product candidate is being tested in animals, though not yet in humans. As was the case with the clinical-stage deals profiled last month, the average payments have grown—though at a slower rate comparing ’94-’95 to ’91-’93, cash payments have doubled to $4.71 million while equity payments have only slightly risen, as compared to upfront payments for clinical candidates, which had just about tripled.
Source: Windhover’sPharmaceutical Strategic Alliances for the PC