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Navigating Potential Disputes in Contractual Collaborations - WIPO Conference Insights

This informative session from the WIPO Conference in Geneva discusses potential dispute areas in collaborations due to differing expectations between parties, providing examples and suggestions on handling risks and uncertainties.

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Navigating Potential Disputes in Contractual Collaborations - WIPO Conference Insights

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  1. Areas of Potential Disputes Lucie G. L. Hattink-Roes Vice President Legal Affairs Solvay Pharmaceuticals Marketing & Licensing AG Allschwil (Basel), Switzerland WIPO Conference, Geneva April 2005

  2. Areas of Potential Disputes • WHAT I SHALL FOCUS ON: • POTENTIAL AREAS OF DISPUTES • because of different EXPECTATIONS of the PARTIES • upon entering the contract • during collaboration / license • related to commercialization WIPO Conference, Geneva April 2005

  3. Areas of Potential Disputes • WHY DIFFERENT EXPECTATIONS • size of the Parties • focus of the Parties • on one product • on more products in • the same product field • more product fields • knowledge and experience • company culture WIPO Conference, Geneva April 2005

  4. Areas of Potential Disputes • EXAMPLES OF DIFFERENT EXPECTATIONS: • Upon entering the contract: • Due diligence • Long decision lines vs. short decision lines • Large complicated contract vs. simple contract • High milestones / royalties vs. market conform remuneration WIPO Conference, Geneva April 2005

  5. Areas of Potential Disputes • EXAMPLES OF DIFFERENT EXPECTATIONS: • During collaboration / license • We have (finally) an agreement, everything will be fine now • Within a few years we will be on the market • Blockbuster perception vs. realistic product potential • Why does it take so long (development) • Priority setting • Interpretation of results and dates • Coping with disappointments • 3) Upon commercialization • Realistic market assessment • Promotional efforts WIPO Conference, Geneva April 2005

  6. Areas of Potential Disputes • SOME FIGURES: • Research terminations for NCE’s by period of first IND filing and by primary reasons for abandonment • economics 33.8% • efficacy 37.6% • safety 19.6% • other 9% • Chance to reach approval / registration • preclinical 14.4% • phase I 22.6% • phase II 32.7% • phase III 78.5% • Licensed in compounds have a higher success rate WIPO Conference, Geneva April 2005

  7. Areas of Potential Disputes • SUGGESTIONS: • Be realistic, not over optimistic: • Know your risk. • Know and evaluate the risk the other party is taking. • What would you do under similar circumstances. • The chance that a product comes to the market is small. • The chance that a product turns out to be a blockbuster is much smaller. • It is better to find a solution for a problem than to say “the contract says…” • If you do not have the required knowledge and experience, the other party will take the lead. • Acquire knowledge instead of being naïve or suspicious. WIPO Conference, Geneva April 2005

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