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Making Licensing Pay

Does in-licensing improve attrition rates? It hasn't reversed the R&D productivity decline-in part because while in-licensed candidates are less risky than internally invented ones, they generate lower average revenues. But companies can do better: we show statistically that they need to place more emphasis on licensing products early. Moreover, to be successful at early-stage licensing, drug firms need focus, not on specific therapeutic areas, but on specific biological mechanisms.

By Jeff Boschwitz, Behzad Aghazadeh, Catherine Arnold, Tong Zhang, and Charley Beever

Back in January, in our first article in this series on R&D attrition, we focused on the importance of managing...

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