The Royalty Rate Report 2011: A Comprehensive Assessment of Valuation in the Pharmaceutical Sector
PharmaVentures Ltd.
June 1, 2011 SKU: PHV6429195
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The Royalty Rate Report 2011 - A Comprehensive
Assessment of Valuation in the Pharmaceutical
Sector provides in-depth information on pharmaceutical
royalty rates. This defi nitive guide of the industry covers
siginifi cant new ground and brings you the most up-to-date
interpretation of royalty information. It introduces methods
for calculating useful fi nancial data missing from the public
domain, but essential for deal makers in benchmarking
and determining value in your deal and its relationship with
future royalty streams.
This report leverages over 20 years’ experience in assisting
pharmaceutical and biotechnology companies worldwide in
all aspects of deal making, plus the fi ndings and analysis of
PharmaVentures‘ extensive market research.
A comprehensive addendum includes the full summary of the
PharmaVentures 2011 market audit and a listing of all royalty
reporting deals from the past 5 years and more.
The report includes:
- the results of Pharma royalty market surveys andPharmaVentures’ critical analysis
- more case studies - PharmaVentures highlights the issuesand pitfalls and gives you the strategies to avoid them
- opinions and advice from leading industry dealmakers - fi rst hand experiences from the people who didthe deals
- clear guidance on the best methodologies to usewhen calculating Royalty Rates to assist with vitaldecision making
- contextual information - the report reviews theappropriate methodologies to use as part of the process tocalculate Royalty Rates in-depth. It explores questions suchas: “What do royalties mean in terms of real value to eachparty?”
- the history of royalties, its relevance to the Bio-Pharmaarena and the psychology of royalty structures
- thought leadership, including the concept of ‘effectiveroyalties’ as an aid in analysis of deal structures, royaltyissues in biotechnology with a critique of the age old 25%rule of thumb, and key opinion leader thoughts on thepublic disclosure of rates
- market data and current trends, including the emerging area of royalty monetisation, is covered in detail along with an analysis of the utility cost of that process.
Throughout the report, you will fi nd extensive case
studies, deal analysis and opinion leader comment all
relating to the quest for better more useable royalty
data.
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- Chapter 1
- History
- Royalties: In the Beginning
- Mining and Petroleum
- Royalties: Incentives and Disincentives
- Royalties by Industry Sector
- Chapter 2
- Thought Leadership
- Deconstructing Deals - Benchmarks and Effective
- Royalties: The Benchmarking Challenge
- Benchmarking Effective Royalties
- Developing a New Methodology
- Is the Biotech Industry Different from Mainstream Pharma
- in its Royalty Requirements?
- Biotech Royalty Stacks
- The 25% Rule of Thumb:
- If Only It Was That Simple!
- Overt or Covert
- Chapter 3
- Benchmarking and eNPV
- Methods for Calculating Royalties
- Return of Research and Development Costs
- Setting Royalties: The Tools
- Benchmarking
- Deal Benchmarking in Practice
- Transfer Pricing: A Hidden Distortion to Royalties
- Estimated Net Present Value (eNPV)
- The Basics of eNPV and NPV Calculation
- Risk
- Further Refi nements of the eNPV Model
- Development Cash Burn
- Chapter 4
- Data and Trends
- Disclosure of Royalties: Why the Big Secret?
- Who Was That Masked Man
- Big Pharma Global Licensing
- Top 15 Big Pharma Royalty Rate Disclosure Frequency
- Addressing Gaps in Agreements
- Licensing Deals in Japan: Culture and Tax
- Standard Terms: Exceptions to the Rule
- Royalties and Deal Structures
- How much Value Does the Royalty Component
- Constitute?
- An Analysis of Rates Used in a Phase III Deal
- Royalties in Early-Stage Technology Deals
- Participation
- Royalties to Fund Development Costs
- Creativity: There’s More Than One Way to Skin a Cat
- Upfronts and Milestones: Are There Changes Afoot?
- Royalty Rates by Phase and Indication
- Royalties and Generics: The Beginning of the End?
- Royalties and IP Valuation
- IP Value and Market Cap
- Monetising the Royalty Stream
- The Utility Cost of Cashing In:Jam Today or More Jam
- Tomorrow
- The Current Economic Climate and its Effect on Royalty
- Rates
- Chapter 5
- Industry Perceptions
- Royalties: A Review of Recent Literature
- Auditing the Pharma Royalty Market - ‘Lies, Damned Lies,
- and Statistics’?
- Chapter 6
- Great Expectations: The 2011 Survey
- Introduction to the 2011 Survey
- Disclosure of Royalty Rates
- Expected Minimum and Maximum Royalty Rates
- Types of Licenses
- Perceptions on Diffi culties of Doing Deals
- Licensor/licensee - who is favoured?
- Trends for Upfront and Milestone Payments
- Prevalence of commercial milestones
- Tiered Royalty Rates
- Royalties and Creativity
- Royalties and Total Deal Values
- Addendum
- Royalty Rates Chart: 2004 - March 2011
- Drug X Utility Cost: eNPV and Discount Rate Calculation
- Royalty Monetisers’ Key Deals
- Agreements: Data from the 2011 PharmaVentures Survey
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