Amarin has an IN-LICENSING agreement solely with Moshida Pharmaceutical Co., and nuanced OUT-LICENSING arrangements with Eddingpharm:; Biologix FZCo; HLS Therapeutics, Inc.; CSL Seqirus; and Lotus Pharmaceuticals
Here is what PharmaVenue (Barcelona) says about these two types of relationships:
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Meaning of In-Licensing
In-licensing refers to the process where a company (the licensee) acquires the rights to a product, technology, or intellectual property from another organization (the licensor). This can include rights to develop, manufacture, and market a particular pharmaceutical product. In-licensing allows the licensee to expand its product portfolio, access innovative technologies, and enter new markets without having to develop the product or technology in-house.
In-licensing agreements usually involve the licensee paying royalties, upfront fees, or milestone payments to the licensor. These payments can be based on the product’s development progress, regulatory approvals, or sales milestones.
If you’re interested in learning more about in-licensing and how it can benefit your company, we highly recommend you to visit our article Why In-Licensing in Pharma?
Meaning of Out-Licensing
Out-licensing, on the other hand, is when a company (the licensor) grants another organization (the licensee) the rights to use its product, technology, or intellectual property. In this case, the licensor typically receives royalties, upfront fees, or milestone payments from the licensee. Out-licensing allows the licensor to generate revenue from its assets, capitalize on the licensee’s expertise, or enter new markets through the licensee’s established presence.
Out-licensing can also help the licensor mitigate risks associated with product development, as the licensee assumes the responsibility for the product’s development, regulatory approval, and marketing.
Advantages of In-Licensing and Out-Licensing Pharma
Both in-licensing and out-licensing offer several advantages to pharmaceutical companies. Let’s delve deeper into the benefits of each type of licensing agreement.
For in-licensing, the advantages include:
• Expanding the product portfolio: In-licensing allows companies to acquire new products or
technologies, which can help diversify their offerings and reach new markets.
• Accessing innovative technologies: By acquiring licenses to innovative technologies, companies can
stay competitive and keep up with the latest advancements in the industry.
• Reducing development costs and risks: In-licensing can save companies time and resources
associated with in-house development, while also reducing the risks related to product development
and regulatory approvals.
For out-licensing, the advantages include:
• Generating revenue: Out-licensing allows companies to monetize their assets, generating revenue
through royalties, upfront fees, or milestone payments.
• Capitalizing on the licensee’s expertise: By out-licensing their products or technologies, companies
can leverage the licensee’s expertise in areas such as product development, regulatory approvals,
and marketing.
• Mitigating risks: Out-licensing can help companies reduce the risks associated with product
development, as the licensee assumes responsibility for developing, approving, and marketing the
product.
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