Valuation of complex license contracts

Ralph Villiger
Boris Bogdan

DOI:https://doi.org/10.5912/jcb302

Abstract:

Licensing is an important business model within the drug development industry. Recently license contracts have become extremely complex, including sublicensing, co-development, or profit sharing. Traditional rules of thumb are not sufficient anymore as guidelines in negotiations of deal terms. The authors explain an easy-to-understand model that enables business developers to negotiate financial terms that are fair for both parties.

Keywords:valuation ,license contracts ,co-development ,sublicensing ,value share ,en ,