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Abgenix might risk exposing the proprietary ABX-EGF technology, making it vulnerable to expropriation if the partner ends up being a potential competitor. Abgenix would have to yield some of the control over their development process and the use of the ABX-EBF drug.

2)

If Abgenix chooses collaboration, would it be better off licensing ABX-EGF to the pharmaceutical company or forming a joint venture with the biotech company?

The main differences between joint venture and licensing out are as follows:

a...

Monetary: In the short term, Abgenix needs cash infusion. Both collaboration modes would provide that. By licensing out, however, Abgenix would not have to bear further costs for further developments, testing, regulatory, manufacturing and marketing of the ABX-EGF product, whereas in the Joint Venture option, Abgenix still has to shoulder a share of such costs and risks...

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