White Papers
White papers and articles published by PharmaVentures' advisors and analysts.
Pharmaceutical Royalties in Licensing Deals: No Place for the 25% Rule of Thumb
The 25% rule of thumb is often quoted in the context of licensing royalty rates and in particular when deriving an appropriate rate of income due to a licensor for an innovative intellectual property asset. We have set out to conduct an in-depth analysis of historic market data from the pharmaceutical industry going back over ten years to check on the validity of this concept and found little if any evidence of its use, appropriateness or relevance. An abundance of anecdotal references and attempts can be found to make deal making data fit this incongruous notion, and which does not have a sufficiently robust foundation to make its utility appropriate in the pharmaceutical and biotechnology sector. Our conclusion shows that this rule has no suitable place in the arsenal of licensing executives.
Trends in the World Small Molecule API Manufacturing M&A Market
The pharmaceutical small molecule API manufacturing industry is now experiencing a period of rapid change. This paper takes a look at the trends that are helping shape mergers and acquisitions (M&A) activity within this dynamic sector.
The Strategic Importance of Biomarkers to the Pharmaceutical Industry
Pharmaceutical companies have become increasingly interested in biomarkers and their incorporation into company drug development programmes and use as companion tests for targeted therapeutics. This article looks at the value created by the addition of a biomarker into the drug development or patient identification process.
Understanding Headline Deal Values - A PharmaVentures Guide to the Interpretation of Deal Terms and Terminology
Great care must be taken when benchmarking and interpreting deal terms because the value of the deal components can sometimes be reported so as to dazzle or deceive a receptive audience. This article considers the principal deal components and provides some guidance as to their interpretation for more effective benchmarking.