Whatever Happened to Up-Front Equity?
Executive Summary
In the past, in-licensers of biotech products often turned to up-front equity purchases, rather than cash licensing payments, to help defray P&L costs of licensing. The partner received the same money to fund its research, the rationale went, and the licensee could book at least some of the payment as the acquisition of an asset, rather than an R&D expense. But as In Vivo amply demonstrates, that thinking is so 20th Century. While equity payments often made up more than half the total paid up front in biotech licensings throughout the 1990's, they've fallen to 25% or below, since 2002.
You may also be interested in...
Who’s Hired? Hikma Recruits New US Generics President
A flurry of top level recruitments made headlines in the past weeks, with the likes of Hikma, Lupin, and Viatris announcing new hires while focusing on their targets for the year.
Organon And Henlius Complete Phase III For Denosumab
Having earlier this year reported positive Phase I data for their partnered denosumab biosimilar candidate, Organon and Shanghai Henlius Biotech have now announced that their HLX14 version has met primary endpoints in a Phase III study.
Taro Agrees $36m Securities Settlement Over US Price-Fixing Claims
Sun’s Taro subsidiary is looking to move forward with an eight-figure settlement deal in the US, after plaintiffs including a firefighters’ pension fund accused the firm of misleading investors via its involvement in generic price fixing, leading to a fall in the price of its securities.