Abstract

Seventy percent of pharmaceutical companies expect their collaborations will primarily take the traditional forms of out-licensing products or technology. Whereas research alliances, in-licensing, and co-development are quite established and traditional collaboration approaches, many established pharmaceutical companies have long considered out-licensing a difficult task. The purpose of this chapter is to illustrate how out-licensing by pharmaceutical companies can contribute to an increase in research and development (R&D) efficiency. A case study of Novartis demonstrates how the out-licensing can be successfully adopted and managed. Successfully executed out-licensing programs provide pharmaceutical firms with several benefits such as additional revenue generation, cost- and resource effectiveness, and mitigation of R&D related risks.

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