New Target Collaborations - Risk and Reward Sharing
October 14-17, 2007
NEW TARGET COLLABORATIONS - RISK AND REWARD SHARING
Wiggin & Dana LLP
Genomics and other technologies have identfied more potential drug targets than some pharmaceutical companies can allocate sufficient resources to discover potential drug candidates. A number of biotech companies have responded with collaboration transactions to discover these potential drugs under risk sharing arrangements. In some of these collaborations, the biotech partner conducts discovery research wholley or partially at risk with most or all compensation deferred until success is achieved. The general structure and common issues with these collaborations will be discussed, including a small molecule collaboration between BMS and Nerviano Medical Sciences and a mRNA target collaboration between Enzon Pharmaceuticals and Santaris Pharma.