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Pharmaceutical Manufacturing and Packing Sourcer

The Deal Structure

Licence or acquisition? That is the question. Being an entrepreneur whose technology is sought after by other companies is a great position to be in, but the decisions moving forward can greatly affect your success and the outcome of your project. Pros and cons exist to both ways of going, and I will lay the key points to think about if you are fortunate enough to be in this position.

A licence agreement grants a third party the right to manufacture and/or market an invention/technology for a specific territory, ie globally or just in the US, Europe, or Asia. The company receives a royalty, an advance against future royalties, and often milestone payments.

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