There are three basic categories of biopharma Deal Types:
Possession
- Acquisition – ownership of one legal entity by another legal entity
- Asset Purchase – ownership of an asset or business unit by a legal entity
- Assignment – permanent conveyance of an asset or right
- Equity – purchase of a share of ownership of one legal entity by another legal entity
- Loan – payment by one legal entity to another legal entity with obligation of repayment
- Warrant – conditional purchase of a share of ownership of one legal entity by another legal entity
Access
- Co-Market – two legal entities with independent rights to price, book and sell product
- Co-Promotion – two legal entities with the joint right to sell a single product
- Cross-License – exchange of license grants between two legal entities
- Distribution – right to access supply and sell product
- Joint Venture – establishment of a partnership, LLC or separate legal entity for developing, approving and/or selling product
- Letter of Intent – two legal entities’ intention to convey access rights (may or may not be binding)
- License – license grant from one legal entity to another
- Option – conditional license grant from one legal entity to another
- Restatement – significant change in terms governing a pre-existing conveyance of access
- Sub-license – downstream license grant of a license that emanated from an upstream licensor
- Settlement – resolution of a dispute regarding license access rights
- Termination – ending a license grant or other access rights
Responsibility
- Co-Development – the licensor performs unfunded development activities post-signing
- CRO (“Contract Research Organization”) – the client funds services related to clinical trials
- CSO (“Contract Sales Organization”) – the client funds services related to sales of product
- CVR (“Contingent Value Rights”) – the legal entity taking possession has contingent financial obligations to the seller of the asset or legal entity
- Development – the licensor performs funded development activities post-signing
- Research – the licensor performs funded research activities post-signing
- Services – the client funds services not generally termed research, development or supply
- Supply – the client funds development and/or production related to product supply