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20% Solution: Addressing the Biotech/Pharma Logjam with Innovation Partnerships

Executive Summary

While pharma needs to access biotech's innovation, biotechs and their investors are unwilling to cede late-stage control. This is a recipe for stalemate: the industry needs different partnership structures which fully pay biotech for innovation (with royalties of 20% or more) and leave early-stage development in their hands, while allowing Big Pharma to do the later-stage development and commercialization. To afford these deals, however, Pharma needs to cut their own spending on innovation.

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