German law change to help drug licensing

Germany's parliament, the Bundestag, has launched a review of the country's insolvency laws, with the approval of the research-based medicine manufacturer's association (VFA). Of particular concern to drugmakers are provisions relating to the status of products that have been out-licensed to a firm which has subsequently been declared bankrupt. The new legislation allows intellectual property in the form of patents, trade marks and copyright, to be the subject of "insolvency-proof" licensing.

Cornelia Yzer, the VFA's chief executive, said: "the federal government's proposal to create an insolvency-proof licensing status is emphatically welcome to the research-based pharmaceutical industry." She added that, "for the development of new medicines created for the benefit of patients, licenses play an outstanding role in intellectual property."

In cases where a drug is held up during its typically 12-year, $800.0-million R&D journey, the insolvency of a licensing partner could have serious financial consequences. The government's proposal would allow work on a licensed drug to continue, without the delays caused by the resolution of a bankruptcy claim.