What Are The Most Important Questions To Ask, Or Factors To Consider, When Considering A New Collaboration?

IN A COLLABORATION BETWEEN TWO COMPANIES, SYNERGY DRIVES VALUE. The first step is to identify the strategies on both sides that will produce synergy for each partner. For example, if a pharma company is building a non-small-cell lung carcinoma (NSCLC) franchise, and its current portfolio addresses 50% of the population, a drug from a partner company that addresses some or all of the remaining 50% creates synergy and meets a strategic need. If such synergies are not identified at the very beginning, partnerships may be hard to establish or execute. Besides synergy, the second important factor is cultural fit. If a company is primarily aiming to sell a product and exit, it doesn’t matter as much. However, for a true partnership where two companies work side-by-side, effective collaboration needs alignment to create shared value. If companies can’t work well together, the collaboration and its productivity are likely to suffer as a result. Since it can take up to a year to get a collaboration contract completed, there is time during the negotiation process to learn about the party across the table. If the initial interactions are difficult, and the two cultures don’t connect, a collaboration may be less productive and could be a struggle. Overall, business needs may be prioritized over cultural fit; if the strategic synergy exists, it is possible to go forward without cultural alignment. But managers overseeing such collaborations must be vigilant and ready to carefully manage workstreams and anticipate challenges as they arise. Cultural alignment between partners should be sought wherever possible.

AXEL HOOS, CEO, Scorpion Therapeutics.