How Biotech Startups Survive the Funding Crunch: Options Deals

By spreading risk, these deals give small companies a chance.

Option deals spread development risk — they push significant consideration to a later, successful stage of development. In other words, the company and its shareholders keep some of the early-stage risk. This Article, published in Haaretz, explores how these types of deals solve a key challenge in the biotech world – getting funds from pharmaceutical companies to early-stage innovators.