Co-promotion

[7] Co-promotion agreements also tend to be much more flexible because partners can decide what type of payments they prefer.

[7] Companies seeking a partner identify their areas of strengths and weaknesses and agree to share promotional efforts.

[6] At the beginning stage the average up-front co-promotion payment could be up to $18m, with a potential royalty rate of 25%.

[7] Co-promotion agreements are commonly used by pharmaceutical companies to improve the marketing and product penetration in particular countries.

Co-promotion plays a major role in the pharmaceutical industries because in today's market, pharma companies are in a situation of falling productivity.

Co-promotion is also considered as an advantage for emerging companies in terms of capital infusions, sharing of risks for product development and for regulatory or commercialisation expertise.

[8] While it has been usual for biotech firms to receive between 5%and 10% of the revenues incurred in mutual projects, this number has grown in some cases to around 50% (Zanetti and Steiner 2001).

In addition, Agensys will work on providing a cancer treatment drug at an earlier stage with a smaller chance of risk through milestone payments.