Suspension of Development Program Clause Samples
The Suspension of Development Program clause allows one or both parties to temporarily halt the progress of a development project under specified circumstances. Typically, this clause outlines the conditions under which a suspension can be initiated, such as unforeseen technical issues, regulatory delays, or force majeure events, and may detail the process for notifying the other party and the duration of the suspension. Its core practical function is to provide flexibility and risk management, ensuring that parties are not penalized or forced to proceed when external factors make continued development impractical or impossible.
Suspension of Development Program. Licensee’s obligation to conduct the Development Program is expressly conditioned on the continuing absence of any event or condition (such as, but not limited to, a regulatory action affecting the Product or the existence of an issue relating to the safety or efficacy of the Product, the introduction of a therapy which has superior safety and/or efficacy, or the existence of any circumstances, economic or otherwise, which make the development or marketing of the Product, in Licensee’s judgment, commercially unrewarding) that would suggest to Licensee, in exercising prudent and justifiable business judgment, that development or marketing of the Product should be suspended or stopped altogether, and Licensee’s obligation to develop or market the Product may be suspended for up to six (6) months, after which time the Development Program shall be resumed or this Agreement may be terminated by Licensor, at the sole discretion of Licensor.