STOCKWATCH: European approval - milestone or millstone?

In times past, biotechnology companies were relatively naïve on the terms of a deal to license their product to pharmaceutical companies. A good pharma trick used to be to allow the biotech partner to opt-in on the joint development of the licensed product so that lower upfront milestone payments could be traded for a bigger slice of the downstream commercialization pie. Unfortunately as companies like GenMab and Celltech later found (scripintelligence.com, 2 July 2010 and 19 November 2003), this development commitment rapidly became a millstone around their necks and led to renegotiated terms which favored the pharmaceutical company.

In times past, biotechnology companies were relatively naïve on the terms of a deal to license their product to pharmaceutical companies. A good pharma trick used to be to allow the biotech partner to opt-in on the joint development of the licensed product so that lower upfront milestone payments could be traded for a bigger slice of the downstream commercialization pie. Unfortunately as companies like GenMab and Celltech later found (scripintelligence.com, 2 July 2010 and 19 November 2003), this development commitment rapidly became a millstone around their necks and led to renegotiated terms which favored the pharmaceutical company.

Read the full article – start your free trial today!

Join thousands of industry professionals who rely on Scrip for daily insights

  • Start your 7-day free trial
  • Explore trusted news, analysis, and insights
  • Access comprehensive global coverage
  • Enjoy instant access – no credit card required

More from Musculoskeletal

Wave Aspires To Accelerated Approval In DMD With 48-Week Data

 
• By 

With its exon 53-skipping candidate already showing promise in 24-week data, Wave now has 48-week data showing improvements in muscle health and functional outcomes.

Regenxbio Rises After Duchenne Update And Sarepta Safety Scare

 

Encouraging results in younger children with Duchenne is keeping Regenxbio on track for a potential mid-2026 filing for its gene therapy, RGX-202.

Sarepta Shares Plummet On News Of Elevidys Patient Death

 
• By 

The gene therapy for Duchenne muscular dystrophy passed the blockbuster sales threshold in 2024. Analysts said the drug’s overall risk/benefit profile still appears solid.

Scrip Asks... What Does 2025 Hold For Biopharma? Part 6: Therapeutic Area Advances

 

Over 140 biopharma leaders share their views on developments to watch for in key therapeutic areas this year. Advances in multiple scientific fields are opening up new avenues for treatment.

More from Therapeutic Category

Ferring’s Faith In Bladder Cancer Gene Therapy Starts To Pay Off

 
• By 

Adstiladrin sales hit €70m in first full year on the market

Multiple Tactics Likely Needed To Control Obesity Drug Costs

 

ICER’s new white paper pointed to estimates that the GLP-1 drugs may result in more than $100bn in annual spending, highlighting the need to rein in costs.

Cartesian Maps Out CAR-T Strategy With Simpler Logistics In Mind

 

The company announced positive Phase IIb data for Descartes-08 in myasthenia gravis, with especially strong efficacy among patients without prior biologic treatment.