A biotechnology and drug research firm has an anticancer compound that is definitely ready for further development. Two choices confront the company; it can form a licensing agreement with a large pharmaceutical partner that bears much of the hazard and would fund the crucial clinical studies.
However, the second choice in the hands of the company is to initiate a spin-off business with venture capitalists. This standalone firm would have the ability to focus on realizing the possibility of the compound, which is new; nonetheless, the drug research firm would lose majority control. The vice-president of business development must decide the way to continue in order to optimize value to the investors and to his firm.
Publication Date: 06/21/2002
This is just an excerpt. This case is about Finance
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