Overview

Companies

Metrics

Content

Purchase

 

EXECUTIVE SUMMARY
Figure E.1:Deal-Making Challenges..............11
Figure E.2: Business Development Annual Budgets: Companies With Budgets Greater Than $1 Million..............18
Figure E.3: Company G: Identification for Therapeutic Areas Covered by General Business Development..............21
Figure E.4: Company O: Decision-Making Process..............22

 

BUSINESS DEVELOPMENT BUDGETS, STRUCTURE AND STRATEGY
Figure 1.1: Centralization of Business Development Functions..............26
Figure 1.2: Business Development Annual Budgets: Companies with Budgets Less Than $1 Million..............27

Business Development Budgets
Figure 1.3: Business Development Annual Budgets: Companies with Budgets Greater Than $1 Million..............28
 

Business Development and Licensing Structure
Figure 1.4: Business Development Staffing: Companies With 10 or More FTEs..............33
Figure 1.5: Business Development Staffing: Companies With Fewer Than 10 FTEs..............34
Figure 1.6: Company L’s Business Development Structure..............35
Figure 1.7: Company M’s Split System..............37
Figure 1.8: Company L’s Small BU Business Development Reporting Relationships..............41
Figure 1.9: Company O’s BD&L Structure..............46
Figure 1.10: Company Q’s Structure..............48
Figure 1.11: Company L’s Primary Care BD&L Function..............49
Figure 1.12: Company L’s BD&L Finance Team..............50
Figure 1.13: Reasons for Pursuing New Deals..............55

Business Development Strategy
Figure 1.14: Licensing Enters the Pipeline..............56
Figure 1.15: Phases in Which Companies Focus for In-Licensing Deals..............57
Figure 1.16: Phases in Which Companies Focus for Out-Licensing Deals..............58
Figure 1.17: Phases in Which Companies Focus for Inbound, Co-Development Deals..............58
Figure 1.18: Phases in Which Companies Focus for Outbound, Co-Development Deals..............59
Figure 1.19: Phases in Which Companies Focus for Inbound, Co-Promotion Deals..............60
Figure 1.20: Phases in Which Companies Focus for Outbound, Co-Promotion Deals..............60
Figure 1.21: Company T’s Licensing Strategy Structure..............65

 

OPPORTUNITY IDENTIFICATION AND EVALUATION
Figure 2.1: Structure of Deal Identification Process..............74
Figure 2.2: Deal Challenges: Deal Identification and Evaluation..............75
Figure 2.3: Deal Challenges: Identifying Deal Opportunities (by Company)..............75
Figure 2.4: Deal Challenges: Establishing Partner Relationships (by Company)..............76
Figure 2.5: Company M’s Basic Market Assessment..............78
Figure 2.6: Company O’s Identification Process..............79
Figure 2.7: Company G: Identification Structure for Therapeutic Areas Covered by General Business Development..............80
Figure 2.8: Company G: Identification Structure for Therapeutic Areas Covered by Therapeutically Aligned BD..............81

Best Practices
Figure 2.9: Company P’s Alliance Review Process..............88

The Deal Identification and Evaluation Process
Figure 2.10: Company O’s Decision-Making Process..............93

 

DUE DILIGENCE
Figure 3.1: Deal Challenges: Due Diligence..............100
Figure 3.2: Master Due Diligence Model..............101
Figure 3.3: Warning Signs..............102

Goals and Investments
Figure 3.4: Duration of Due Diligence..............103
Figure 3.5: Due Diligence Investment..............103
Figure 3.6: Company G’s Due Diligence Considerations..............107

Cooperation in Due Diligence
Figure 3.7: Business Development Staffing By Deal Stage: Companies With Up to 10 Cumulative FTEs..............112

Cross-Functional Involvement
Figure 3.8: Business Development Staffing By Deal Stage: Companies With More Than 10 Cumulative FTEs..............113
Figure 3.9: Inbound Deals: Functions Involved in Due Diligence..............114
Figure 3.10: Outbound Deals: Functions Involved in Due Diligence..............114
Figure 3.11: Prevalence of Tools Used to Estimate Potential ROI..............121

Deal Negotiation and Finalization
Figure 4.1: Deal Challenges..............128
Figure 4.2: Business Development Staffing By Deal Stage: Companies With Up to 10 Cumulative FTEs..............136
Figure 4.3: Business Development Staffing By Deal Stage: Companies With More Than 10 Cumulative FTEs..............137
Figure 4.4: Inbound Deals: Functions Involved in Deal Negotiation/Finalization..............139
Figure 4.5: Outbound Deals: Functions Involved in Deal Negotiation/Finalization..............139

 

BUSINESS DEVELOPMENT DEAL PROFILES
9 Deal Profiles that Contain the Following Data Points:

Deal Background

• Type of Deal
• Number of Bids Solicited
• Anticipated Peak Annual Sales
• Groups Involved in Steps of Deal-Making Process

Timing and Decision-Making

• Investment in Deal-Making Process
• Time to Complete Due Diligence
• Average Cost of Due Diligence
• Division of Control for Clinical Development and Marketing Decisions

Finances and Key Challenge

• Royalty Percentage
• Milestone Payment Triggers
• Key Challenge to Deal Success