While the CEO of Transgene aspires to launch their product independently in Europe, he acknowledges the immense cost of a Phase 3 trial. A partnership with a large pharmaceutical company is viewed as the most realistic "best case scenario" to accelerate development and de-risk the final, most expensive stage.

Protagonist can opt out of its co-development deal with Takeda post-NDA filing. This move triggers a $400 million payment and converts the partnership to a high-royalty model (14-29%). This structure allows them to de-risk commercialization while retaining significant financial upside, effectively creating a lucrative licensing deal on demand.

To tackle the high-risk, high-reward obesity market, the company is developing both an injectable and an oral version of the same triple-agonist molecule. The injectable version will enter the clinic first, allowing them to quickly obtain human proof-of-concept and validate the molecule's efficacy before investing heavily in the more complex oral formulation.

Over 20 years, Alnylam raised $7.5 billion. Remarkably, this was evenly split between equity financing from capital markets and non-dilutive funding from pharmaceutical partnerships. This balanced strategy was essential for financing a long, capital-intensive R&D journey while managing shareholder dilution.

Contrary to the focus on large upfront payments, a smarter partnership strategy is to negotiate for a larger share of downstream success through royalties and milestones. This can yield far greater long-term returns if the product succeeds.

The company's strategy for its IL-23 inhibitor isn't just a single drug approval. They follow an established industry model where one successful drug becomes a pipeline for multiple related inflammatory indications like psoriasis, Crohn's, and ulcerative colitis, dramatically expanding its market potential over time.

For years, Actuate's CEO has shared progress with large pharma companies, not just for early deal-making, but to get critical feedback on their development plan. This helps them understand what data potential acquirers need to see to make a compelling offer later.

Astute biotech leaders leverage the tension between public financing and strategic pharma partnerships. When public markets are down, pursue pharma deals as a better source of capital. Conversely, use the threat of a public offering to negotiate more favorable terms in pharma deals, treating them as interchangeable capital sources.

In its acquisition of Bluejay, Mirum employed a creative deal structure combining stock and cash. The stock component ensures Bluejay's shareholders remain invested in the asset's success, while sales milestones de-risk the acquisition for Mirum and allow the selling team to share in future upside, creating a win-win partnership.