Licensing Agreements in Pharmaceuticals

Licensing agreements in pharmaceuticals are contracts where one company allows another to use its intellectual property, like a drug or technology, under specific conditions. This arrangement can involve the developer of a new medication (the licensor) granting rights to a larger company (the licensee) for manufacturing, marketing, or selling the drug. In exchange, the licensor receives royalties or upfront payments. These agreements help bring new treatments to market faster and expand access, while providing financial rewards to the original creators for their innovations.