Did You Know?
Inlicensing is a partnership that develops between two companies with shared intentions or goals. Though business is often characterized as cutthroat, inclicensing sheds light on the often exorbitant costs of product research and development and the solutions to meeting those costs with the use of a partner. Many instances of inlicensing occur within the pharmaceutical industry, where the research into new drugs can often cost substantial amounts of money. Within the pharmaceutical industry, a larger pharmaceutical company might enter into an inlicensing agreement with a smaller research firm, which will provide the researchers while the larger pharmaceutical company often provides the facilities as well as any necessary materials and money. The research firm will also provide some capital. In many instances, a successful inlicensing agreement proves lucrative to both the larger, more well known company and the lesser known, smaller firm.