A non-profit biomedical research organisation sought third party consultation and negotiation assistance to license a potential new drug application for an existing compound with multiple potential indications. Their objective was to negotiate and secure a solid up-front payment for the license and establish a significant royalty rate. The organisation faced additional challenges, including an option that had previously been granted to a sub-optimal licensee. They reached out to PricewaterhouseCoopers based on the Firm’s global reach, fact-based approach and extensive experience with intellectual property transactions.
PricewaterhouseCoopers used a multi-disciplinary team of economists and pharmaceutical industry experts to work with the client’s business development officers, scientists, and in-house and outside counsel to develop the needed negotiation strategy and supporting basis. The team conducted a critical analysis to evaluate and summarise the intellectual property package, identify appropriate candidate licensees and determine all potential markets and market applications for the compound. PricewaterhouseCoopers also assisted with the client’s negotiations to buy out the position of the sub-optimal party holding the option on the compound. Once the team identified the compound’s key value drivers, they determined the best format to receive bids and prepared the negotiation team with the required facts, negotiation strategies, and approaches. As the negotiations developed, PricewaterhouseCoopers evaluated the alternative offers and advised on specific license contract terms and conditions to ensure optimal returns for the client.
The client successfully licensed the technology to a leading European pharmaceutical firm, receiving a significantly greater-than-anticipated, multimillion dollar upfront payment and a higher royalty rate. In addition, the client formed a positive ongoing relationship with the licensee and advanced its broader mission through the new relationship.