Torreya Partners frequently acts as an advisor to life sciences companies that are interested in licensing a product or achieving a related outcome (e.g., joint venture or co-promotion agreement).

Our licensing advisory services include:

  • Partner identification
  • Diligence support
  • Materials preparation
  • Partner outreach
  • Economic analysis
  • Transaction negotiation

Our main value added comes from our experience in working on past partnering transactions and in industry relationships. Today, many potential in-licensing companies are considering so many products and have so many constituencies that need to sign off on a potential transaction that getting an idea through the "noise" is the greatest hurdle to a deal. In many cases, we have been quite helpful to our clients in surmounting this hurdle through our strong relationships inside potential partnering companies.

Experience is critical as well. The typical licensing transaction in the life sciences sector involves multiple steps, some of which are quite complex. It pays to have been there and to have seen the many ways in which a process can proceed and to have developed a sense of the factors that drive relative negotiating leverage. We often can bring value to even an experienced business development team at our client.

We almost always prefer to see our client lead substantive discussions as relationships between companies are, ultimately, personal. In a typical situation we will focus on getting the right process in place, getting the right parties to the table and ensuring, wherever possible, that discussions between parties unfold in the right way.

Another area in which Torreya Partners often provides support is through economic analysis. We have developed a standardized economic model for the analysis of a wide variety of partnership transactions that focuses on the split of present value and on the return on investment expected to both sides of a transaction. Most large industry players pay close attention to these parameters when exploring partnerships and it is important in a negotiation to have a sense of what the economics look like for both sides. In many cases, we encourage both sides to present their economic analysis of a potential deal as a means of finding common ground.