Pharmaceutical Company Licensing Agreement

All this means that licensing can be very attractive to both pharmaceutical companies and investors. But, as I said above, it can also create confusion – confusion that can lead to ill-informed decisions on the part of investors. In the event of a dispute between cooperation agreements and licensing agreements, the impact can be costly. In the event of a dispute, companies should think very carefully about whether litigation is the best way to resolve disputes. Drug discovery and development is an incredibly long, costly and uncertain process – but also litigation. And unlike clinical development, which is subject to at least (partial) the rules of science, the results of disputes often depend on factors beyond the control of the parties. Recent jury judgments show that the failure of a single development program can result in licensing disputes worth hundreds of millions of dollars. More and more biotech and pharmaceutical companies are taking active steps to avoid (1) conflicts of cooperation and licensing; and (2) to resolve disputes that arise without resorting to litigation. There are a number of non-procedural strategies to help companies deal with uncertainties related to cooperation and licensing agreements, including: If your client owns an invention, he or she must decide on his or her licensing strategy before granting it a first license, because once an exclusive has been granted (unless it is limited by the domain of use or territory) , it is not exclusive and vice versa. The licensee must perform due diligence with respect to the current licenses of the same invention. While you probably don`t learn the economic conditions of pending licenses, the potential licensee needs to know what was awarded to whom and for what areas. The future licensee must know if there is still room for the intended use of the invention.

If your customer is willing to purchase a non-exclusive license for a connection or product (or the actual equivalent of an exclusive license with a limited use domain), you are negotiating for a licensee agreement that prevents all other licensees from developing the same or substantially similar formulation that your client is developing.

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