Full, new data and analysis based on data from the premier agreements database, PharmaDeals® v4, and other sources
Topics including Royalties and Deal Structures, Sales Milestones, Tiered Royalties, Alternative Structures, Technology Deals, Deal Creativity, Upfront Payments and Milestones, Royalties and IP Values and Market Cap, and Royalty Rates by Phase and Indication.
Data and analysis of a recent major survey undertaken by PharmaVentures about royalties and changes in deal making over the last 5 years
A glossary, and a wealth of figures and tables
The Report updates previous editions with a review of methods for calculating royalties, including topics such as research and development costs, benchmarking, transfer pricing, the basics of eNPV and NPV calculation, cash flows, relevant costs, risk and cash burn.
by Dr Fintan Walton
Chapter 1 History
1.1 Royalties: In the Beginning
1.2 Mining and Petroleum
1.3 Royalties: Incentives and Disincentives
1.4 Royalties by Industry Sector
Chapter 2 Thought Leadership
2.1 Deconstructing Deals – Benchmarks and Effective Royalties: The Benchmarking Challenge
2.2 Benchmarking Effective Royalties
2.3 Developing a New Methodology
2.4 Is the Biotech Industry Different from Mainstream Pharma in its Royalty Requirements?
2.5 Biotech Royalty Stacks
2.6 The 25% Rule of Thumb: If Only It Was That Simple!
2.7 Overt or Covert
Chapter 3 Benchmarking and eNPV
3.1 Methods for Calculating Royalties
3.2 Return of Research and Development Costs
3.3 Setting Royalties: The Tools
3.5 Deal Benchmarking in Practice
3.6 Transfer Pricing: A Hidden Distortion to Royalties
3.7 Expected Net Present Value (eNPV)
3.8 The Basics of eNPV and NPV Calculation
3.10 A Further Refinement of the eNPV Model: Sensitivity Analysis
3.11 Development Cash Burn
Chapter 4 Data and Trends
4.1 Disclosure of Royalties: Why the Big Secret?
4.2 Who Was That Masked Man?
4.3 Big Pharma Global Licensing
4.4 Top 15 Big Pharma Royalty Rate Disclosure Frequency
4.5 Addressing Gaps in Agreements
4.6 Licensing Deals in Japan: Culture and Tax
4.7 Standard Terms: Exceptions to the Rule
4.8 Royalties and Deal Structures
4.9 How much Value Does the Royalty Component Constitute?
4.10 An Analysis of Rates Used in a Phase III Deal
4.11 Royalties in Early-Stage Technology Deals
4.13 Royalties to Fund Development Costs
4.14 Creativity: There’s More Than One Way to Skin a Cat
4.15 Upfronts and Milestones: Are There Changes Afoot?
4.16 Royalty Rates by Phase and Indication
4.17 Royalties and Generics: The Beginning of the End?
4.18 Royalties and IP Valuation
4.19 IP Value and Market Cap
4.20 Monetising the Royalty Stream
4.21 The Utility Cost of Cashing In: Jam Today or More Jam Tomorrow
4.22 The Current Economic Climate and its Effect on Royalty Rates
Chapter 5 Industry Perceptions
5.1 Royalties: A Review of Recent Literature
5.2 Auditing the Pharma Royalty Market: ‘Lies, Damned Lies, and Statistics’?
A.1 Royalty Rate Deals Chart: 2004 – January 2012
A.2 Drug ‘X’ Utility Cost: eNPV and Discount Rate Calculation