Strategic alliances are important tools for many technology-based companies. Since the early 1980s, cash-hungry biotechs have used alliances to accelerate clinical development. In some cases, the need of these companies was primarily financial, given the significant expense associated with commercializing therapeutics. In other cases, smaller biotech firms were looking for larger partners that had experience with clinical trials or in marketing and distributing pharmaceutical and other products. Often they required access to financial resources.

type Carefully negotiated agreements can increase the potential for success