The XenoMouse: The Case for Where Business Should Go1) What are the pros and cons of Abgenix working with a partner on ABX-EGF versus going it alone ? A company partner brings the benefit of providing additional capital, resources and other material to develop the ABX-EGF drug program, while limiting the amount of risk Abgenix assumes. For example, the drug may not develop properly and fail in the tracks, or perhaps prove unsuccessful, this after Abgenix provided a large amount of their limited resources. It is also an advantage that the partner has complementary knowledge, resources and assets to market, sell, test and develop the drug for commercialization and/or testing. A significant obstacle is the testing and other regulatory phases required by the FDA's Center for Drug Evaluation and Research (CDER). When the drug demonstrates its effects and the company makes breakthroughs or makes necessary changes, it develops experience and knowledge that will be needed for future pharmaceutical compounds. A patchwork of studies has also shown that collaboration can be a powerful tool for higher achievement and greater productivity as collective efficacy can significantly increase groups' aspirations, motivational investment, morale, and resilience to challenges. It is noted that there are competitors on the market (AstraZeneca and Genetech), which produce similar products or are being developed to copy cancer-fighting techniques. That said, adding a partner further helps Abgenix push ABX-EGF to market faster, thereby reducing various costs to adapt to sudden changes. Overall, it is in Abgenix's best interest to work with a partner to increase the possibilities to focus on. Both decisions involve resolving short-term cash and other resource needs, which, regardless of choice, will reduce the strain on your personal resources and free up time to focus on other prospects or areas of the business. Further down the line, Abgenix will need to gain access to or develop areas it lacks, such as the regulatory process, commercialization, and sale/supply of drugs to the market. To achieve these processes, or adapt more quickly, the joint venture would provide access to new capabilities of the partnering company. Licensing the drug to another company, on the other hand, does not provide many benefits. However, concerns about working with a company can lead to exploitation or copying/taking away of something proprietary, expertise, technique or technology, which will harm future earnings in the long term..