Maximizing the Potential of Platforms Through Creative and Effective Deal-Making Strategies

Many biotechs develop platforms but struggle to capitalize on the value they create. Lacking expertise, biotechs can find themselves signing deals and forging financially and scientifically suboptimal collaborations.

Large pharmaceutical companies remain keen to pursue platform deals for various reasons. Ken Custer, VP of Business Development at Eli Lilly & Co., explained that platforms could advance multiple projects and the potential to deliver multiple medicines, both of which are attractive to leading pharma companies. Barbara Lueckel, Global Head of Technology Partnering at Roche, concurred, adding that platforms enable large companies to fill gaps in their development and discovery activities and to move faster.

Regarding collaboration, Shafique Virani, CBO at Recursion, and Jim Weissman, previously COO at Dicerna, urged platform companies to put off dealmaking until they identify the lead target and proof of value, what IP is retained, and other potential targets available for partnering.

In addition, other human factors will allow biotechs to maximize the value of their platforms and effectively position the technology. For example, forging a solid cultural fit between the scientific teams on both sides of the deal is essential as these teams will likely be working together for a decade or more. Gaining buy-in from executives can be effective in forging favorable deals, too, and biotechs should never forget that ‘people like to do deals with people they like.’ Investing in human capital can be as effective in maximizing the potential of a platform as investing in the science itself.