While the biotech industry is a hotbed of innovation, it also straddles its own challenges, particularly for fledgling startups regarding the maze of licensing. For start-ups, licensing agreements are a means by which they can capitalize on the latest technologies, obtain funding and penetrate market areas. Still, a whopping 80% of biotech startups fail when it comes to their licensing strategy. In this article, you will read about trendy pitfalls and also get suggestions to prevent them.
1. Inadequate Market Research
Before making licensing agreements, it is quitecommon that a lot of startups jump in this segment without doing market research. Understanding the market requirements, competitor landscape and prospective customers are key to success. Boston consulting firms, like the aforementioned biotechnology consulting firm or life science consulting firm, help provide market intelligence and further perfect your strategy.
2. NO PROTECTING YOUR INTELLECTUAL PROPERTY
Management of Intellectual Property (IP) is everything. Too often, Startups undervalues the IP protection they have secured prior to the licensing process. If you are based in Boston and looking for pharma or biopharma consulting firm there, we will be able to help and evaluate your IP portfolio as well.
3. Ignoring Regulatory Mandates
Regulatory compliance is a challenging discipline to manage. A great many of these regulations are neglected by start-ups, eventually resulting in expensive delays and legal problems. We can guide you through the regulatory side of things as well, noting any areas where your product must be brought up to standard.
4. Misaligned Partnership Goals
The best licensing deals are ones built on common goals between licensers and partners. Most startups are impatient and they rush into partnerships without aligning goals and objectives. Prior to approaching major donors or investors, a biotech consulting firm or a life science consulting firm in Boston may be able to identify prospective partners with shared goals.
5. Negotiation Strategies That Fail
The negotiation is the most important part of licensing deals. Deals happen, and one of the worst things startups can do is to go into negotiations gunning for last best offer without doing their homework. Boston area life sciences or pharma consultants can also assist in negotiation to help you land the best terms.
6. Inadequate Financial Planning
Companies often falter first by not managing their finances properly. A comprehensive financial plan is an obvious necessity for technology startups which are required to pay a plethora of licensing fees as well as royalties, without mentioning other frugalities. Hiring a life science consulting firm will facilitate to form a robust monetary strategy.
7. Not Valuing the Commercialization Pathways
A clear understanding of the commercialization pathway is critical to licensing success. This is often overlooked by the startups which results in low performing products You can take the help of a pharmaceutical or biotechnology consulting firm in Boston to start with viable commercialization planning.
8. Lack Of Proper Research
It is important to exercise due diligence and confirm licensing opportunities are achievable. So, that means many startups may not have thought about it very much (if at all), and those partnerships may not lead to the benefits they were hoping. r.Get the groundwork done by using a consulting firm with expertise in Pharma/biopharma.
9. Absence of Experienced Lawyer
Licensing agreements can get super complicated legally. Early-stage companies do not usually have senior legal advisers, hence they tend to get hold of unprofessional agreements. A biotechnology or life science consulting firm in Boston with extensive legal knowledge should be used to consult them.
10. Ineffective Communication
You and your partner must have clear and consistent communication with each other. Failed communication can result in misunderstanding and conflict. This blog will discuss strategies for better communication that consulting firms in Boston practicing biotech or pharmaceuticals can help with.
Licensing is one of the hardest processes for many biotech startups, surrounded by pitfalls that are best to avoid. Utilizing an experienced consulting firm can help guide and facilitate the challenges that come with licensing agreements.
For more information how we can help your organization, contact BioBoston Consulting COMMUNICATE WITH US TODAY.