Ever wonder how to bring new drugs to market faster and at a lower cost?

In-licensing could be the answer.

Through In-licensing you can tap into external innovations by acquiring the rights to develop, manufacture, and market treatments discovered by other companies. By doing so, you can expand your product portfolio without the substantial costs and time associated with in-house drug development. Not only does this speed up the introduction of new treatments into the market but also supports your business growth by diversifying your product offerings and enhancing your competitive edge. In short, in-licensing is a game-changer for staying ahead of the curve in this fast-paced industry.

Make in-licensing work for you

For in-licensing to be effective, it should align closely with your broader business objectives. Start by conducting a thorough analysis of your current product portfolio to identify any gaps or areas where your offerings might be lacking. This could involve looking at therapeutic areas where you have limited presence or where there is emerging demand that you are not yet meeting.

Once these gaps are identified, in-licencing offers a strategic opportunity to fill them without the need for ground-up development. By partnering with other companies who have promising developments in these areas, you can quickly bring new, required treatments to market. This not only strengthens your product line but also helps to solidify your position in the market as a leader capable of meeting diverse patient needs.

At Galen, we also use in-licensing as a proactive approach to future-proofing our business against changes in disease prevalence and treatment advancements. By aligning in-licensing efforts with our strategic goals, we ensure that every new addition to our portfolio benefits both our overall business trajectory and patients' lives.

Do the groundwork to meet your match!

When selecting suitable partners for in-licensing, it’s essential to ensure that the partnership aligns with your strategic goals and upholds your company's standards. Here are some critical areas to consider:

• Commercial fit: Ensure the product has an alignment with strategic goals and therapeutic focus and that the value proposition is clearly defined
• Cultural compatibility: Choose partners that are compatible with your goals and culture to foster smooth collaboration
• Regulatory compliance: Ensure a potential partner has a strong compliance record to avoid launch delays
• Market Presence: Favour partners with strong market presence for easier product entry
• Conduct your due diligence: Assess a potential partners financial health, reputation, and IP strength
• Weigh things up: Analyse potential risks and benefits (market acceptance, scalability, etc.)
• Remember to measure: Define clear objectives to measure success and alignment with strategy

Negotiate for a win-win partnership

When negotiating in-licensing agreements, focus on several important elements to ensure the terms align with your long-term business goals. Here are some of our hints and tips:

• Clarity is Key: Define all terms - rights, obligations, duration, and territory. Set clear milestones for smooth collaboration
• Win-Win Financials: Structure payments (upfront, royalties, milestones) to reflect value, revenue, and development risks, incentivising both parties
• Protect Your IP: Clearly define ownership of existing and future intellectual property to prevent disputes
• Balanced Exclusivity: Negotiate exclusivity to protect your market interests, but be fair to avoid hindering the partnership
• Preparation is Power: Understand your partner's needs and the product's technical, regulatory, and market aspects. Engage experts for a robust, compliant agreement

Beyond the deal: Mastering integration

Integrating in-licensed products into your existing operations requires a strategic approach that starts with involving key teams such as, marketing, sales, commercial operations and regulatory affairs early in the process. This ensures a comprehensive understanding of the product and how it fits into your portfolio. Training and knowledge transfer from the licensing partner is vital to fully equip your team with the necessary information about the product’s background and market potential.

Aligning the product's regulatory strategy with your company's existing processes is essential for seamless regulatory approvals. Additionally, adapting your supply chain and developing a coherent market strategy are vital steps to efficiently accommodate the new product and ensure it competes effectively in your target markets.

At Galen, we strongly believe that building a strong and lasting partnership is key. It’s important to prioritise open and regular communication to keep both parties aligned and responsive to any arising issues. Establish and monitor clear performance metrics to help both parties stay focused on shared goals, while factoring in flexibility to adapt to changing terms and strategies in response to market or regulatory changes. Long-term incentives and established conflict resolution mechanisms are also key to sustaining a mutually beneficial partnership.

By following these practices, you can effectively integrate in-licensed products and maintain productive partnerships, thereby driving growth and innovation in your operations.

Track your in-licensing wins

Setting clear goals that align with your strategy to measure the success of in-licensed products is vital. You can achieve this by embedding product metrics like sales, market share, and profit margins into existing reviews (quarterly reports, annual reviews). This way, you can easily understand the in-licensed product's impact on your business.

It’s also important to look beyond the numbers in your evaluations. You can gain rich insights by tracking customer feedback and brand alignment to see how the market feels about the product and how well it fits your offerings. Additionally, it's important to analyse the product’s contribution to strategic goals, such as entering new markets or strengthening market share in existing ones.

Conduct these evaluations at regular intervals after the initial launch and then annually to compare actual performance against set benchmarks. This ongoing analysis helps adjust strategies in response to market dynamics and internal business changes, ensuring the in-licensed product continues to meet or exceed expected outcomes.

Conclusion

At Galen, we're constantly seeking innovative ways to get vital treatments to people faster and more efficiently. Building strong In-licensing partnerships is an essential component of our strategic operations, allowing us to leverage external advancements and strengthen our product portfolio.

For us, in-licensing goes beyond just acquiring new products. It's about building strong, collaborative partnerships. Open communication, clearly defined agreements, and a shared vision for success are all essential for maximising the benefits of this strategy.

So, if you’re looking for a new in-licensing partner, get in touch!