Bigger Deal Values by Splitting Indications: PDL's Experience

It is one of the odder aspects of biotech life that one of the most important new ways to increase the dealmaking value of products has nothing to do with science or negotiating tactics-but sales auditing. PDL Biopharma's deals with Roche and Biogen Idec revive the notion of splitting indications among partners, a strategy apparently killed by the Amgen/J&J battle over EPO.

It is one of the odder aspects of biotech life that one of the most important new ways to increase the dealmaking value of products has nothing to do with biology, medicine, the stock market, medical practice, or even negotiating—but sales auditing.

Consider: one of 2005's best-performing IPOs came from Aspreva Pharmaceuticals Corp. which bases its business on securing approvals for...

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