Big Arris deal goes against the grain


Big Arris deal goes against the grain

Over the last few years, an equity investment by corporate partners has come to be viewed as a requisite seal of approval validating a biotech company's technology. According to this reasoning, the potential upside of an equity stake builds an incentive for the senior partner to make the smaller company's programs succeed.

However, from the latter's point of view, the downside is that the smaller partner in effect pays the bigger party

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