How to Shop Around Your Most Valuable Asset

"With an almost non-existent IPO market and reduced venture capital investments, many Biopharma companies are looking for alternative sources for capital infusion to fund their R&D and clinical operations. Out-licensing is one of the available options that gains importance in recent years. Emerging Biotech companies that are able to sign an out-licensing agreement with a credible licensee are better positioned to survive the long proof-of-concept stage in the product lifecycle. In addition to the immediate capital infusion, the licensee benefits from increased technological credibility and investor confidence. This often translates into enhanced capability to raise further capital in the private or public market, usually at higher valuation. Although attuned to the importance of out-licensing, many companies are struggling to execute an effective out-licensing strategy and some fail to maximize the value of their most valuable assets. "

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