License

The license module is structured to value licensed drug development projects. The projects can be in- or out-licensed (biotech-pharma), or in- and out-licensed (academia-biotech-pharma), with the license already in place or in the future. The module allows you to quickly value the most complex license contract structures, export the valuation into Excel, and send out to negotiation partners. Even early-stage license deals with potential sub-licensing become easy to value. ri:val automatically calculates the value of the project for all involved parties. You can use the module to:

• Calculate the value share of a proposed term sheet
• Put yourself into your negotiation partner's position
• Find your and your partner’s leeway in term sheet negotiations
• Elaborate a new term sheet
• Analyze the contribution of milestones and royalties to the total value
• Look at different scenarios and their financial consequences
• Compare different deals with each other
• Make a decision whether to license
• Communicate the financial value of the deal to your investors
• Plan ahead with license revenues or expenses

Functionality

Input parameters:

• The license structure of a drug development project can contain:
• Mode of license (in-, out-, or in- and out-licensed)
• Licensing phase
• Upfront payment
• Milestone payments per indication and phase
• Co-development structure (contribution to R&D, licensing of regional rights)
• Structure of royalty payments (per indication, per market, or per drug)
• Number of royalty tiers
• Early royalty rate
• Royalties after patent expiry
• Commercial milestones
• Sales milestones

Results

• Value and IRR for in- and out-licensing company (rNPV, real option value)
• Value share for in- and out-licensing company (rNPV, real option value)
• Value composition for in- and out-licensing company
• Value development for in- and out-licensing company
• Risk profile for in- and out-licensing company
• Monte Carlo simulations
• Development thresholds
• Development timelines
• Report