2014, Number 4
On the negotiation of biotechnology products that include intangible assets
García DD, Ortiz TM
Full text
Language: Spanish
References: 8
Page: 297-303
PDF size: 354.24 Kb.
ABSTRACT
In biotechnology, products negotiations are imposed by the intangible component associated to them, which can be either due to the strength of the patent, its novel technology or the fact that these concern research and development projects, at the different stages of development of a biotech product. This paper covers some general topics on negotiations that are included in any process: negotiation stages, strategies, principles and settings. An explanation is also given on the negotiation of intangible assets: patents, trademarks, technologies and commercial rights, the meaning of upfront fees and royalties on sales. The results of the analysis of a sample of the negotiations in BioCubaFarma (the Cuban biotechnology and pharmaceutical industries group) with intangible assets are given and compared to another study of a sample representing more than 1500 negotiations of biotechnology companies occurring between 1998 and 2003. The conclusions of the comparison show that the upfront fees in this sector are in the same range as the international negotiations of the study taken as a reference. In the case of royalties, the average percentage is very close to the international mean. The analyses show that within the negotiations associated with intangible assets in BioCubaFarma there is a prevalence of licensing agreements for co-development and subsequent marketing, followed by distribution agreements. Finally, the most frequently used business models in the Cuban biotechnology industry are described.REFERENCES