July 22, 2008
Campbell Alliance was an active contributor to the first "LES BioPharmaceutical Royalty Rates and Deal Terms Survey" published by the HealthCare Sector of the Licensing Executives Society (USA and Canada), Inc.
Ben Bonifant, Vice President and head of the Business Development Practice, analyzed several data cuts from the database and provided key findings that were included in the report and presented at the LES 2008 Spring Meeting & International Conference in May 2008 in Chicago.
James Forte, Director of Public and Media Relations at Campbell Alliance, also contributed to the communications and marketing strategy for the report's distribution.
Included below is the full press release as distributed by LES.
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The Licensing Executives Society (USA and Canada), Inc. HealthCare Sector has published its first "LES BioPharmaceutical Royalty Rates and Deal Terms Survey."
This landmark survey includes real-time data from licensing executives who are involved in a wide range of licensing agreements. It provides data and insights about deals in the biotechnology/pharmaceutical sector that is extremely difficult to obtain.
The report features data from an industry sample of more than 150 deals – respondents participated voluntarily and all data was provided anonymously.
The deals broke down into the following categories:
120 of the deals were completed in 2006 or 2007. Key findings regarding deal terms included:
Royalty rates are important components on most deals, and the survey found the following:
The therapeutic areas represented by deals in this survey included anticancer, cardiovascular, central nervous system, musculoskeletal, and ophthalmology.
"As predicted, this survey found an increase in the value of transactions proportional to the stage of development at the time of the deal," said Jim McCarthy of Expression Genetics (EGEN), Chairperson of the 2007-2008 Royalty Rate Survey Committee. "As projects move from pre-clinical, through proof of concept in humans, to regulatory approval, the royalties do increase, reflecting the incremental value being created from these activities."
In reviewing the findings, committee members were pleasantly surprised by the percentage of deals submitted on pre-clinical compounds. These deals are done very early in the cycle and have always been the most difficult to gather information on. Other results provided insights into the area of fixed and tiered royalty rates. Fixed rates were most common in early stage pre-clinical and smaller deals, while the frequency of tiered rates increased with sales estimates.
Members 2007-2008 Royalty Rate Survey Committee who oversaw this report included:
This valuable report is one of the many benefits of LES membership and reflects the organization’s commitment to provide its members with relevant, cutting edge licensing educational information.
The full survey report, with over 100 pages of analysis and data, is available exclusively to LES (USA & Canada) members. Excerpts of the report are also posted on the LES (USA & Canada) website at www.usa-canada.les.org. For more information, contact LES (USA & Canada) at 703-836-3106.
The Licensing Executives Society (USA & Canada), Inc. is a professional society comprised of more than 6,000 members engaged in the transfer, use, development, manufacture, and marketing of intellectual property. LES members includes a wide range of professionals, including business executives, lawyers, licensing consultants, engineers, academicians, scientists and government officials. Learn more at
About Campbell Alliance
Campbell Alliance is the leading management consulting firm specializing in the pharmaceutical and biotechnology industry. The firm's clients include most of the world's top-20 pharmaceutical companies, as well as numerous emerging and midsize firms. Campbell Alliance is organized into practice areas, each specializing in a critical industry function, including Brand Management, Business Development, Clinical Development, Managed Markets, Sales, and Trade and Distribution. From its locations in Raleigh, Parsippany, Los Angeles, San Francisco, Chicago, Boston, Philadelphia, New York, Atlanta, and London, the firm serves clients throughout North America, Europe, and Japan. For more information on Campbell Alliance, please visit http://www.campbellalliance.com.