Deal Watch: Best Value For Smaller Firms Lies In The Back-End

With more deals on earlier-stage platform technologies and compounds, the companies offering such assets need to take a rational approach to pricing – accepting a lot of potential back-end compensation – to get fair value, one analyst says.

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The controversy around US drug pricing dynamics is adding another dimension of difficulty to deal-making, says Vasilios Kofitsas of Back Bay Life Science Advisors, and an environment where established products may not be as safe an asset class as in the past should drive an increase in deals around emerging technology platforms and earlier-stage candidates.

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