Financial models should be developed based on patient populations, customer adoption, target pricing, and reimbursement levels
(if applicable). SWOT (strengths, weaknesses, opportunities, threats) analyses also provide a valuable tool to position the
IP. At this point, an analysis of the strategic fit of an IP with a potential partner should be performed. This includes
financial modeling: revenue, profitability, and net present value (NPV) under various partnership models, as well as an assessment
of the impact on the potential partner's financials.
7. Identify and Prioritize Key Partners
Once the IP is positioned, valued potential partners should be identified and prioritized. These candidates can then be rated
and ranked to yield a prioritized list of partnering targets. Often, a first round of research will turn up an impracticably
large number of potential partners. After a structured screening and selection process, though, it will turn out that a number
of these companies offer only a loose fit with your partnership strategy. Factors that go into screening include critical
factors such as relevant clinical experience, a focus in the particular therapeutic area, and past experience commercializing
and marketing products. In addition, potential partners' past level of commitment to other alliances and/or partnerships can
also be determined.
Next, a contact strategy should be created. This involves creating a communications and marketing plan to effectively approach
key contacts at the companies. Factors including corporate culture, introductory position, and approach should be considered
before initiating contact with potential partners. The plan should also include the development of introductory briefs, letters,
or documents. A mishandled first approach can make information about your IP public. It is important to move carefully.
8. Develop Presentation Collateral
Presentation collateral is a key component of the partnering process that serves to introduce both the partnering opportunity
and the organization/self. A non-confidential business development brief is typically created to introduce the partnering
opportunity, product/technology, and organization soliciting the business partnership. A confidentiality and non-disclosure
agreement, which will be required to move beyond a non-confidential level of discussions, should also be drafted. With the
confidentiality documents prepared, business development and marketing collateral can be created to support a marketing campaign
for the product/technology. PowerPoint presentations called "Pitch Books" are typically prepared to present the product/technology,
the partners involved, the rationale for the partnership (alignment of technologies and/or competencies), and terms of the
9. Assess Commercial Interest and Attractiveness
With the marketing campaign and "road show" prepared, the next step is to initiate initial contact with the identified partners.
Leveraging the strategy/plan previously developed, initial contact can be made via phone, email, mail, or though in-person
appointments. The level of initial interest can be assessed, and the preliminary presentation meetings can be scheduled. In
the initial presentation, the pitch book is presented, whereby the value proposition and alignment of intellectual property
with commercial potential is made. After the initial presentation, both parties then evaluate the attractiveness and feasibility
of the partnership. Factors considered by both parties include determining the company's level of interest in pursing further
due diligence, assessing success achieved in past partnerships, and evaluating a preliminary go/no go decision.
10. Finalize the Partnership Model
If upon initial analysis a commercial partnership appears to be mutually beneficial, both parties move into a period of due
diligence. The first steps involve a period of in-depth valuation. At this stage, preliminary forecasts of financial returns
from the commercialization partnership are prepared. Forecast valuation analyses of the technology or product are finalized,
and a period of active due diligence is initiated. During due diligence, in-depth financial, strategic and operational analyses
are conducted to determine a potential partner's overall attractiveness. Deal structures are created and evaluated to determine
the optimal partnership model, and options are created to allow for strategic negotiations, typically requisite to a deal.
Provided the due diligence process moves to a partnership stage, final arrangements are made. These include finalizing any
contractual details and establishing a partnership management structure.