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A better prescription for drug-development financing

As the cost of drug development continues to rise and public markets shift their attention to companies with late-stage products, an increasing diversity of financing options are becoming available to biotech companies with early-stage clinical programs.

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Figure 1: A comparison of biotech and pharmaceutical R&D productivity.
Figure 2: Clinical-stage development candidates.
Figure 3: Sources of biotech equity capital.
Figure 4: Value of biotech out-licensing deals.
Figure 5: Current (typical) deal terms by stage of development.
Figure 6
Figure 7: Example of a collaborative development financing structure.
Figure 8: Illustrative value creation through collaborative development financing.


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The authors would like to thank Sam Hall of Symphony Capital LLC, who assisted in the preparation of this article.

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Kessel, M., Frank, F. A better prescription for drug-development financing. Nat Biotechnol 25, 859–866 (2007).

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