Three Silicon Valley Attorneys Examine the Sharp Increase in Life Sciences Co-Commercialization Deals

The life sciences industry is experiencing an explosion in the use of co-commercialization arrangements in collaboration agreements. This trend appears to be driven by skyrocketing biotechnology valuations and increased competition among pharmaceutical companies to partner with biotechnology companies to license key technology.

In a Bloomberg Law article published on Dec. 27, strategic transactions partner Megan Baca and associate Georgina Jones Suzuki (both of Silicon Valley) surveyed and analyzed market trends for life sciences co-commercialization arrangements and found that there is an abundance of diverse approaches taken by companies.

With respect to co-commercialization arrangements, the authors examine business rationales, summarize recent market trends, break down deals by financial size and provide negotiation considerations. They conclude that co-commercialization arrangements are valuable tools that allow life science companies to share in the financial risks and rewards associated with the development and commercialization of a drug product. The authors provide various approaches to negotiating co-commercialization terms to effectively close favorable deals.