Forces driving large life science companies to partner include:
- Need to enhance product development pipelines;
- Availability and low cost of investment cash for product development; and
- Reduced evidence of “not invented here” mentality.
The primary force driving smaller companies to seek out partners is the scarcity of development-stage investment capital from venture capital, angels, etc..
Given the different goals and cultures of the large and small firms in these alliances, care should be taken to structure and manage the relationship.
Rob Funsten, co-chair of Brown Rudnick’s global life science group, provides us with a useful summary of preparations and practices to a successful alliance.
Click here for the article in “Corporate Counsel” magazine (free registration required).