By going after Big Pharma's late-stage cast-offs, biotechs that want to be drug developers can lop years off the development time compared to de novo pharmaceutical discovery. The in-licensed compounds have already met, at the least, the druggability hurdle; their intellectual property is nailed down, they've passed the ADMET tests, and they're scalable. This strategy promises to maximize the assets of large company drug originators and give younger, smaller companies access to compounds for in-licensing. However, out-licensers still face many hurdles, which prevent them from being able to engage in the practice. (See In-Licensing: Still a Difficult Model, START-UP, November 2003 Also see "In-Licensing: Still a Difficult Model" - Scrip, 1 November, 2003..)
On the out-licensing side, Big Pharma has widespread fear of letting go, partly because the primary goal of licensing executives is to bring large revenue-producing products in. Out-licensing, on the...
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