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Biopharma Out-licensing: 2012’s “In” Thing?

Executive Summary

Talk to any big pharma business development executive about dealmaking trends for more than 15 minutes and the word out-licensing is bound to crop up. But are major drugmakers moving beyond the rhetoric and actually giving up rights to individual assets that heretofore would have been deemed too valuable to merit out-licensing? An analysis by IN VIVO suggests yes – but with qualifications.

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Institutionalizing Externalization At Big Pharma – The Third Leg

The pharmaceutical industry has a hard time saying goodbye to strategic assets. In fact, it’s much more adept at welcoming new ones: diversification – either geographic or into areas beyond pure-play pharmaceuticals – has become commonplace. But pharma needs to overcome its entrenched resistance to asset externalization, which should become a critical third leg in its attempts to build long-term shareholder value. Strategic, almost biotech-like externalization strategies should move from a peripheral to a core part of pharma’s activities. Why haven’t they already been embraced?

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