in many cases Big Pharma enter as a partner with a condition...

in many cases Big Pharma enter as a partner with a condition upon positive results of either a licensing agreement or a milestone acquisition.
Another Biotech today announced they are penning a licensing agreement that stock has climbed 35% today,
Big Pharma have to walk a fine line , they need empirical evidence to invest their own SH/Funds but are aware that the same positive data will drive up the SP so taking an equity position early with some hurt money ,eg$20m gives them first right of refusal , this also signals to other Big Pharma they have a foot in the door and have established a commercial relationship
As SH we want the MC of our company SNT to be as high as possible before BP come knocking , Takeovers are at multiples of the MC,,
Phase III can be wholly carried out by Big Pharma they, lately some hugely significant T/O have occurred upon positive phase II data ,,
Best of luck with your investments,, NZT