Licensing Deals Still Backloaded In 2013, But Biotechs Could Gain Leverage
An analysis of alliance deals in 2013 shows pharmas’ continued reliance on heavily structured deals, a strategy that has often frustrated biotechs looking to partner. But the appetite for new IPO listings may be giving them more options, provoking competitive deal terms from licensors.
You may also be interested in...
Investor-friendly capital allocation and the rising strength of large biotechs and specialty pharmas have jeopardized Big Pharma’s position of strength in M&A. Analysis by Ernst & Young suggests that industry’s largest companies face unusual challenges – and must adapt to new marketplace realities.
A Moody’s report lists seven pharmas among the 50 non-financial companies sitting on the largest piles of cash. These very big war chests hold the preferred currency, particularly for ex-U.S.pharma deal-making.
With little leverage against Big Pharma, some smaller companies are turning away from long-standing partnering strategies. It’s one reason dealmaking slowed considerably in 2012, part of a three-year trend that also highlights increasing reliance on heavily structured partnerships.