Proven Strategies to Speed Up Biotech and Pharma Partnering & Out-Licensing Deals
Are you frustrated with the slow and time-consuming process of out-licensing biopharma assets? The good news is that there are several strategies you can use to expedite dealmaking. In this no-nonsense article, we describe 7 key steps to accelerate partnering and out-licensing, from identifying ideal partners to optimizing outreach. These points should enable you to fast track pharma and biotech partnering and out-licensing, speed up biopharma asset monetization, and quickly finalize partnerships while minimizing the costs and risks involved.
1. Identify Synergistic Potential Partners
The first step in accelerating the partnering process is to carefully research and select biopharma companies with a strong strategic fit for your asset. Do not take an eclectic approach; instead, take a systematic and targeted approach.
Knowing the competitive landscape is immensely helpful. Conduct competitive intelligence research and analysis around the asset you are seeking to out-license. From here, you can identify an initial group of companies to approach. Of course, you should investigate each of these companies as well. This additional effort upfront dramatically improves your odds by allowing you to articulate detailed, tailored value propositions demonstrating the “licensing win-win” to your top targets.
Initially, we don’t advise spending time on mismatched prospects. You can also take a smarter approach to finding out-licensing partners by looking beyond usual prospects. A good practice is to identify different tiers of partners and approach them depending on your outreach strategy.
2. Pinpoint Key Decision Makers
The next step to expedite out-licensing is to identify the relevant decision-makers in the target companies, i.e. identify the key players who can accelerate pharma and biotech dealmaking. Learn who has the authority to evaluate and drive potential BD deals forward. This includes CBOs, VPs, Heads of BD, Licensing Directors, scientists, and others who are empowered to say yes or have the ability to influence the licensing process.
3. Secure Current Contact Details
The third step to speed up the partnering process is to approach key people individually. Go beyond cold emailing generic BD@ inboxes. You will not receive a response promptly, and generic channels mean your messages rarely penetrate. You can’t develop relationships with potential partners without contacting the key decision-makers directly. This crucial step is often overlooked by small biotech and pharma companies eager to out-license assets, mainly due to the enthusiasm about the asset they are developing and the bias in their thinking.
Do the legwork to find current email addresses and phone numbers for your top targets before initiating outreach. This shows you are serious about partnering. With direct contact information, you can instantly capture their attention. Ask contacts to provide warm introductions to additional dealmaking champions. Remember, internal referrals are a powerful tool.
4. Sustain Outreach Before and After Conferences
Everyone attends BIO and several other conferences – view biopharma partnership conferences and networking events as starting points, not finish lines. Follow up consistently with all contacts before and after meetings to accelerate licensing deals. Conferences spark interest and open doors, but you need nurturing via email, phone, and in-person to turn connections to accelerate partnering deals. Book follow-ups at conferences and maintain momentum in the months after with friendly check-ins to keep out-licensing moving.
5. Prioritize Targeted and Personalized Approach
The next step involves customizing your pitch and directing it to the right people for productive discussions. There is a common tendency to send the same teaser and non-confidential deck to each of the companies. While the core material is likely to be the same, however, make sure to customize it for each company – articulately tell potential licensees how your asset fits, what synergy it provides, and how it reinforces their pipeline. A targeted approach is key to expediting pharma and biotech licensing deals.
6. Dedicate Time to Business Development and Partnerships
The sixth step to accelerate your partnering activities is to avoid dabbling in the out-licensing process. This means, don’t randomly approach a few people from your LinkedIn contacts, BIO leads, or other sources. Instead, you need to have a structured approach. This includes having a list of companies, contacts in each company who you plan to approach, and bespoke non-confidential material to provide them. Good project management skills are useful, as is adhering to the best practices for out-licensing in your company or what you have developed with your experience- they will enable you to accelerate biopharma asset monetization and speed up outlicensing.
7. Strategically Seek External Assistance
Small biotech and pharma companies are often under-resourced. Seek targeted external support to augment BD bandwidth and fast track the partnering process.
The cost of running the whole out-licensing process is high, so companies should only externalize the portion of the work where they need assistance. While it might be tempting to avoid external support, companies should avoid being penny-wise and pound-foolish. Delays shrink the value of the asset, or in business development terms, the risk-adjusted net present value (rNPV) of the asset, due to its limited patent life and time value of money.
Ideally, companies should conduct valuation during the preparation phase when out-licensing their asset. Just as no one puts a house on the market without knowing its value, companies should know how much their asset is worth. If the valuation was done and you performed a sensitivity analysis, then you would instantly know how much a delay of a quarter would reduce the value of the asset.
Adhering to these steps will expedite your pharma and biotech partnering and licensing. Once the asset is under evaluation and due diligence by potential licensees, then you have less control over the process. However, proper preparation and strategic outreach as mentioned in this article can significantly accelerate biopharma dealmaking.
BiopharmaVantage provides premium quality but cost-effective licensing and partnering services to biotech and pharma companies. If you would like to explore how we can assist you, then please contact us.