Transaction Services

Cooperations & Licensing

 

There has been a strong surge in the health and life science industries with many successful companies been formed and cooperations established in Europe, North and South America, India, China and other Asian countries.

At the same time, a stronger consolidation trend in the health and life science industries is observable in all regions. The number international of merger and acquisition deals has increased constantly.

In some countries a cooperation is even more expedient, than a merger. There are several forms of cooperations, as for example joint ventures or strategic alliances. In cooperations, you need to pursue and understand strategic analysis before you commit. For international joint ventures or strategic alliances you must understand the local culture, identify risks, etc and make sure you understand how you must do business in that local environment. You also need to ensure the cooperation is aligned with your company’s Corporate Strategy. It’s also important to understand the specific competitive environment that the joint venture will be operating in as well.

 

Joint Venture

A joint venture is a business agreement in which the parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets. In emerging countries, ahead in China and India, a joint venture is the most common form for a foreign enterprise to enter the market.

 

Strategic Alliance

A strategic alliance is one of the most common forms of cooperation between two or more parties to pursue a set of agreed upon objectives need while remaining independent organizations. Partners may provide the strategic alliance with resources such as products, distribution channels, manufacturing capability, project funding, capital equipment, knowledge, expertise, or intellectual property. The alliance often involves technology transfer (access to knowledge and expertise), economic specialization and shared expenses. Acquirers are looking for strategic alliances over acquisitions to share the risk.

 

Licensing

A license may be granted by a party ("licensor") to another party ("licensee") as an element of an agreement between those parties. A shorthand definition of a license is "an authorization to use the licensed material". In healthcare trademark and brand licensing are very common. A licensor may grant permission to a licensee to distribute products under a trademark. The most common terms are, that a license is only applicable for a particular geographic region, just for a certain period of time or barely for a stage in the value chain. Moreover there are different types of fees within the trademark and brand licensing. The first form demands a fee independent of sales and profits, the second type of license fee is dependent on the productivity of the licensee.

 

In healthcare industry cooperations are widespread and sensible – especially when entering new or emerging markets. ConAlliance advises in overseas business expansion and in making successful investments through cooperations and licensing. We will help you close and implement any form of cooperation.