Protein Sciences Corporation, 1000 Research Parkway, Meriden, CT 06450, USA Tel: +1 203 686 0800 Fax: +1 203 686 0265 E-mail: manon.cox@proteinsciences.com

Revised 2 May 2005.

Abstract

One of the biggest challenges in the biotech industry is to secure sufficient funding to support product or technology development. Partnering with companies that have cash and expertise – which, for the most part are larger biotech or pharmaceutical industries – may for many small biotech companies be more appealing than dealing with the financial community – venture capitalists and the like. The risk to the small biotech, however, is enormous because the partner may decide to return the rights to the product. This event usually leaves the product in limbo and the technology used to develop it tainted because of uncertainty regarding the real reasons for the return and the assumption in the world at large that there is something wrong with the product/technology. Thus, the licensor is left in the dark and is faced with 'what's next?' Here our company's strategy to overcome the terminated licence disaster or alternatively to take advantage of the terminated licence opportunity is described.