Chapter 7 - Business Development

24 Questions

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Business Quizzes & Trivia

Because half of us are Business Development, lots of us support business development, and business development is what supports M Squared.


Questions and Answers
  • 1. 
    Upon what is a company's "Partnership Reputation" based?
    • A. 

      Ability to successfully conduct hostile takeovers of companies

    • B. 

      Ability to forge BD contracts and creative payment strategies

    • C. 

      Ability to successfully merge with other companies

    • D. 

      Street cred

  • 2. 
    What do BD deals typically involve, at the highest level?
    • A. 

      Attracting clients

    • B. 

      Selling products

    • C. 

      Alliances or partnerships with other companies

  • 3. 
    • A. 

      Identify, negotiate, and often implement deals that align with corporate strategy

    • B. 

      Create and negotiate deals that bring new and innovative ideas into the company

    • C. 

      Assist the marketing arm of the company with promoting the company

    • D. 

      Monitor acquisition and divestiture deals.

  • 4. 
    With which other teams does BD work most closely?
    • A. 

      Marketing, Clinical Development, and Regulatory

    • B. 

      Regulatory, Legal, and Marketing

    • C. 

      Discovery, Development, and Regulatory

    • D. 

      Clinical Development, Marketing, and Discovery

  • 5. 
    True or false: While products under development and licensing opportunities can come from anywhere within the company, BD takes the first pass at processing/screening them.
    • A. 

      True

    • B. 

      False

  • 6. 
    • A. 

      Immediately goes into processing

    • B. 

      Goes to a secondary approval committee

    • C. 

      Stays in BD to advance to the next step

    • D. 

      It goes back to the other company until their BD team accepts it

  • 7. 
    • A. 

      Due diligence

    • B. 

      GAAP

    • C. 

      Discounted cash flow

    • D. 

      Scientific risk-aversion analysis

    • E. 

      Stochastic analysis

  • 8. 
    For opportunities that survive in-depth analysis, who makes up the team that sits down at the negotiating table to finalize the deal?
    • A. 

      BD, Legal, Finance

    • B. 

      Marketing, Legal, BD

    • C. 

      Discovery, Development, BD

    • D. 

      Marketing, Development, Finance

  • 9. 
    There are three contractual terms that usually receive the most attention.  Which item below is no one of them?
    • A. 

      Description of the business relationship

    • B. 

      Deal value

    • C. 

      Legal description

    • D. 

      Schedule of payments

  • 10. 
    Name the following common BD deals: A. Marketing of the same product under a different brand name B. Establishment of a new corporate entity to commercialize a product that is jointly owned by the partners. C. Licensing by one contract partner of sales and marketing rights to the other's product in a specified geography. D. Licensing of limited commercial rights by one contract partner to the other partners product in exchange for development funding and/or assistance
    • A. 

      A. Co-marketing B. Co-promotion C. Manufacturing or supply D. Marketing-Licensing

    • B. 

      A. Co-Marketing B. Joint Venture C. Market-Licensing D. R&D and Marketing Licensing

    • C. 

      A. Joint Venture B. Product Acquisition C. Market-Licensing D. Co-Promotion

    • D. 

      A. Product acquisition B. Joint Venture C. Market-Licensing D. Manufacturing or Supply

  • 11. 
    • A. 

      In-licensing and Acquisitions

    • B. 

      Cooperative Development and Commercialization

    • C. 

      Out-Licensing and Divestiture

    • D. 

      Hostile takeovers

  • 12. 
    True or False: Negotiations and deals cannot cover  multiple products and/or involve complementary services; there must be a specific deal for each product/service.
    • A. 

      True

    • B. 

      False

  • 13. 
    • A. 

      A deal with contingent terms.

    • B. 

      A deal with a "test/no fault" clause.

    • C. 

      When a deal is structured so that the success of the initial product triggers mutual obligations with respect to other products.

    • D. 

      When a deal is structured so that one party has the option of backing out before the final negotiations, and the other party is aware of this fact.

  • 14. 
    On what will the financial terms of the deal be based?
    • A. 

      It will be based on the value assigned to the asset and decisions about how that value is to be shared.

    • B. 

      It will be based upon the total value of the companies entering into the negotiations.

    • C. 

      It will be based on the value that each party brings to the deal.

    • D. 

      The FDA must assign the value of the product in question.

  • 15. 
    • A. 

      A product that has FDA approval

    • B. 

      A late stage product

    • C. 

      An early stage product

    • D. 

      A product that is undergoing off-label investigator trials

  • 16. 
    • A. 

      By working with the legal team to product airtight contracts that absolves them of any risk.

    • B. 

      Through the careful structuring of deal payments.

    • C. 

      By only entering into negotiations regarding late stage compounds.

    • D. 

      By employing Steve Jaben to handle their legal affairs.

  • 17. 
    • A. 

      Reoccurring payments that happen in predefined intervals.

    • B. 

      Payments that are based on sales performance.

    • C. 

      Where one party leaves bags of money at certain milemarkers along the interstate.

    • D. 

      Payments that are contingent on the achievement of certain development or commercialization goals.

  • 18. 
    • A. 

      When the joint venture would create antitrust concerns through less competition in the market.

    • B. 

      The FDA must always approve BD deals between companies.

    • C. 

      In cases where the contract calls for a change in manufacturing facilities.

    • D. 

      None. Approval is received from internal regulatory bodies only.

  • 19. 
    • A. 

      Opportunity prospecting

    • B. 

      Deal evaluation and closure

    • C. 

      Therapeutic evaluation

    • D. 

      Alliance management

  • 20. 
    Industry wide, to which entity does BD typically NOT report?
    • A. 

      The C-Suite (CEO, COO, CFO)

    • B. 

      R&D

    • C. 

      Leader of Strategic Marketing

    • D. 

      Regulatory

  • 21. 
    • A. 

      Legal

    • B. 

      Marketing

    • C. 

      Finance

    • D. 

      Technical Specialist

  • 22. 
    Most leading companies in the BioPharma industry are engaged in:
    • A. 

      In-licensing

    • B. 

      Out-licensing

    • C. 

      Both in-licensing and out-licensing

    • D. 

      Neither in-licensing or out-licensing

  • 23. 
    Beckett's birthday is coming up on March 1. She is wishing for:
    • A. 

      Angel food cake with strawberries.

    • B. 

      New running shoes with speedy red laces.

    • C. 

      W. Lawrence Bragg (back when he was younger and won, of course, not the older gentleman)

    • D. 

      Coffee, coffee, and more coffee.

    • E. 

      All of the above.

  • 24. 
    Please enlighten us and your fellow team members with regards to the following questions:BDMs: In what ways does the BD function of a pharma company differ from the BD function here at M2 and how can we market to members of this team? What can M2 offer them? How would you pitch to them?CSMs: What criteria would you be looking for in a consultant to fill a role in the BD function of a pharma company. What types of needs can you anticipate a BD team member having and in what ways would you refine your search criteria to fund a consultant to fill that need?Operations:  What did you learn in this chapter that you did not know before and how can you use it to support other members of the LSG team?You may submit this via e-mail or in the space below, which ever you feel more comfortable with.