DEFINING A PROGRAM

To maximize perceived value, it is generally useful for the seller to partition programs into as many discrete but justifiable units as possible. Having many chips with which to negotiate gives you options if negotiations reach an impasse. If you have three anti-cancer compounds at different stages of development, present each as a different R&D program with its own unique name. Developing each compound for a different cancer, even if they could all be developed for the same cancers, makes it easier to justify why they are separate development programs. A buyer may try to license them together, treating one compound as a lead and the other two as backups, but your goal is for buyer to pay for three separate programs, each valuable in its own right.

The same compound may be formulated in several different ways to address disparate markets with multiple unique products. Furthermore, it is possible to partition market rights by region, partnering each individually. The US market is the largest and most profitable single market, estimated at 50%-80% of the total global market for various indications. Europe and Japan are also notable, though other countries do not factor significantly into high level marketing strategy.