Once a company has made the decision to partner or collaborate [1] and has found the right product or the right partner [2] – the next step is to create a strong relationship and negotiate the best possible deal for both parties.
Create clear objectives and identify benefits
Negotiating and managing a deal needs to begin with clear, precise and well-defined objectives and outcomes as well as an understanding of mutual benefits – these can form the basis for the whole process. [3]
Build and manage a collaborative relationship
Partnerships can last for many years and involve intense negotiation. Priorities and objectives can also change over time, especially as science moves forward, and as markets change. Creating and nurturing a transparent and trust-based relationship, with frequent, clear communication and regular face-to-face or virtual meetings, can make the process smoother and ensure that both parties remain focused on the goals and objectives. Managing the deal itself may require setting up governance frameworks, joint committees and processes to ensure that the partners remain aligned. [3-6]
Having a clear route for communications, with reporting requirements and systems, is important for both parties in a collaboration, and helps to build relationships. For a small deal or a small company this may involve one ‘point person’ for key communications; for a larger deal or in a larger company, this may be a team of people. [6, 7]
Deal with differences
It’s important to be aware that big pharma and startup companies work in different ways and have different cultures. The decision-making process is likely to be slower in a large company as the infrastructure is more complex. The focus on return on investment may be greater as a larger company is more likely to have shareholders. [7]
Collaborations can cross international boundaries. Because of this, companies need to be aware of the potential effect of cultural differences. There can be a cultural impact on decision-making processes, communication styles, negotiation tactics and approaches to teamwork. For example, different cultures can react differently to disagreements, find direct styles of communication challenging, or place greater emphasis on relationship-building.
There can be variations across countries on the emphasis placed on regulatory compliance, such as the importance of documentation or formal processes. The attitudes to risk in drug development, or the importance of pricing, can also vary around the world. Language barriers can slow down discussions, lead to misunderstanding, or cause issues with clarity and trust.
These differences can be managed by investing time and effort in understanding each other’s culture and business etiquette, building relationships both formally and informally, getting to know different markets, and becoming familiar with local regulatory and compliance requirements. Communications must be clear and in plain English, or be translated accurately into local languages. Working with local experts can be exceptionally valuable in cross-border and cross-cultural dealmaking. [5, 8-10]
Even a difference as simple as a time zone can be challenging when co-ordinating meetings and communications. This can be handled by allowing staff allocated to the project to work flexible hours for part or all of the time. Using communications and project management tools to keep people up to date, and collaborating with local project managers, can also make the process run more smoothly. [9]
Where it comes to marketing and patient engagement, cultural differences can be significant. As an example, direct communication about certain symptoms or health conditions may be difficult. While this may not specifically be a deal issue, it is something that should be borne in mind. [7]
Manage the data and intellectual property
Data and intellectual property (IP) are key to drug development, and partners need to ensure that the agreements are clear concerning intellectual property ownership, and licensing and commercialisation rights, as well as data sharing. This includes: [3, 5, 6]
· Defining the IP and data, and the corresponding licens...
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