Even though Swedish Biotech has the potential to grow, the road that drug
development related projects have to travel on their way from discovery to
commercialisation is long, expensive and complicated.
One crucial step that most projects need to pass on their way to the market is the
transfer from a research intensive biotech company to a resource rich
pharmaceutical company that can pay for the last expensive development of the
product and bring it to the market. The transfer of the project often take place
through a license agreement that the biotech and the pharmaceutical company
together form during negotiations.
The structural change that the pharmaceutical industry is going through has led to
an increase of biotechnology licensing and this trend is likely to continue for yet
some years to come. The income the biotech company receives from out-licensing
their projects is often the only income they have and it is therefore crucial for the
biotech companies survival that the license agreement are formed without severe
The history of Swedish Biotechnology licensing contains several examples of
license agreement that have not brought optimal value to the biotech companies.
Because of the sudden increase of license agreements the need to study the
problems that lie in the way when Swedish biotech and pharmaceutical companies
meet to negotiate is urgent. This report therefore aims to identify some of the
actual problems that occur by analysing interviews with key persons in the field.
Both actors involved in license agreement negotiations as well as general industry
experts have been interviewed to obtain different perspectives of biotechnology
licensing. Four different issues that cover the negotiation process, the outcome of
the negotiations as well as the negotiation ability of the involved actors were
identified as the features that the respondents were most concerned about. The
identified issues have been named; parking, long negotiations, lack of experience
and the Swedish problem.
Uppsala: Företagsekonomiska institutionen , 2007. , 42 p.
licence, negotiations, parking, long negotiations, lack of experience, licence agreements, biotech, sweden