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US Biotechs Assign European Marketing Rights

 
• By Deborah Erickson

Most US biotechs dream of becoming international corporations. But when the chance arises, economic realities often compel firms that retain European marketing rights to assign those privileges to other parties. That's prudent, because the costs and complexities of establishing operations in Europe should not be underestimated, say executives who've been there and done that. Sometimes minimizing risk is the best way to maximize the value of a compound.

US biotech companies that retain the right to market their own products in Europe are increasingly assigning those rights to other parties, saying they prefer to be realistic rather than naïvely optimistic. Differences in language, culture, regulatory requirements, marketing and sales practices and prescribing practices make building a European marketing operation a challenge that isn't necessarily worth the time, energy and money—no matter how appealing the notion of becoming an international corporation.

But that doesn't necessarily mean they'll sign up with mid-sized European firms for partnerships. Instead, they seem to be turning...

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