Royalty Stream Buyout Negotiations - Cancer Therapeutic

BACKGROUND

Upstream's client, a renowned research institute, had licensed a patented cancer therapeutic technology, which had recently launched following FDA approval. It was seeking to negotiate a buyout of the future royalty stream.

OUR ANALYSIS

Upstream:

  • Prepared projections of future drug sales and royalties to the institute,

  • Assessed potentially competitive drugs that would serve the same patient populations,

  • Prepared multiple scenarios for review and analysis with the institute's leadership, and

  • Developed proposed buyout terms and supported institute personnel in negotiations.

OUTCOME

Upstream's client sold a portion of its royalty stream in a creative deal structure that provided an eight figure payment with potential longer term payments.