Licensing accelerates the creation of novel products and treatments while generating revenue for the technology owners. Additionally, licensing fosters collaboration and partnerships among diverse organizations, driving advancements in the field and enhancing patient care.

Licensing a product from one biotech company to another generally involves the transfer of certain rights to use, manufacture, and sell a product or technology. In a licensing agreement, one company grants another company permission to use a specific technology or product in exchange for some form of compensation, often a royalty payment based on the sales of the licensed product.

The company or individual granting the right to use a product, process, or technology it owns is referred to as the “licensor”, and the company or individual that’s granted the right to use the asset is called the “licensee”.