Joint venture

Two parties join together to develop a business, technology, compound or product jointly.

Two parties join together to develop a business, technology, compound or product jointly.

View or report title: Global Joint Venture Partnerships in Pharma, Biotech and Diagnostics

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.

Two or parties set up a new company whose shareholding is held by the parties. Joint venture companies are generally set up to enable the joint development and subsequent commercialization of a technology, compound or product.

Joint venture partnerships may involve two parties collaborating to advance an asset to market where the two parties share the development risk and subsequently share in the commercialization rewards in the form of revenues either from direct marketing or licensing to a third party. Another joint venture may be formed to jointly commercialise a new or existing product in a new or existing market, with one party bringing the product expertise and the other the marketing and distribution capability.

The joint venture provides a legal entity structure to the deal whereby the parties to the deal establish and jointly operate the new legal entity, inputting resources and extracting profits as agreed between the parties at the outset.

One of the most successful joint ventures in the life sciences sector was TAP or Takeda – Abbott Pharmaceuticals – set up by Takeda and Abbott in order to commercialise Takeda’s products in the North American market. The joint venture was a resounding success, resulting in Takeda acquiring the joint venture company from Abbott in order to obtain its own independent presence in the market.

While the prospect of sharing the costs of late-stage development through product commercialization
can be a high-risk proposition for many small, financially-strapped biotechnology companies, cost and revenue share economic structures provide the smaller partner with an opportunity to retain some degree of control over development and to ultimately capture a larger piece of the upside of a successfully approved and launched product.

Joint venture partnerships have become popular in recent years as companies seek to access new opportunities and markets, but partner to do so.


1. Joint venture agreement for CPL Biologicals

This joint venture, called CPL Biologicals Pvt. Ltd., will develop and manufacture vaccines, biological therapeutics and diagnostics in India using technology contributed from Novavax and Cadila Pharmaceuticals.

View full deal at Current Agreements


View or report title: Global Joint Venture Partnerships in Pharma, Biotech and Diagnostics

View search results at Current Partnering: Joint venture

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