Business model

Clinical Development Partnerships (CDP) works with companies on a shared risk-reward basis. The clinical trial is conducted at no cost to the company and the data is optioned to them at the end of the study. Around 30% of clinical trials fail at Phase I. Thus, funding this phase of the clinical development reduces the overall risk to the company providing the agent. Furthermore, unlike other out-licensing strategies, the company retains rights to the existing intellectual property throughout the clinical trial.

Companies wishing to work with CDP will enter into a Clinical Trial and Option Agreement (CTOA) with Cancer Research UK and Cancer Research Technology. A template agreement has been drafted to incorporate all the key commercial and clinical aspects of the trial into one simple agreement. Cancer Research Technology has considerable experience negotiating these agreements and aims to complete the transaction as rapidly as possible to ensure that the clinical work can be begin with minimum delay.

In most cases, if the trial is successful we would anticipate that the company will wish to exercise its option and acquire rights to the clinical data. However, if having completed the trial the company is not interested in progressing further with the programme, then the rights to the existing intellectual property would be transferred to Cancer Research Technology and an alternate licensee sought.

The revenue share split will be based on the value each party has added to the project but will vary depending on the type of agent, the stage of development, availability of material and funding each party has provided. The revenue share may be broken down into standard licence terms in the event the company takes the product forward themselves rather than through a licensee. This would include a series of success milestones and royalty payments.