Licensing: pros and cons for biotech

This article guides the reader through strategic considerations when facing the option to license a drug development project. It is crucial to understand these licensing events in their full complexity in order to achieve maximum value for the company and the shareholders, while minimizing risk. First, the nature of various license agreements and the needs of licensor and licensee are discussed. Second, the main strategic issues for the licensor are explained and a guideline, how to come to a decision whether to license and to what terms, is given. Third, the authors explain how to overcome different assumptions when negotiating a license contract.