Effective Royalty Rates in Biopharma Alliances: What They Are & Why Use Them in Negotiations
les Nouvelles - Journal of the Licensing Executives Society, Volume LII No. 1, March 2017
18 Pages Posted: 4 Mar 2017 Last revised: 10 Mar 2018
Date Written: March 1, 2017
Serious analysis of royalty rates in the biopharma sector requires access to unredacted, or FOIA-released, license agreements. Upon inspection, such agreements need transformation from tiered royalties to standardized effective royalty rates (EFRs) to be most useful in ongoing negotiations. This study reports trends in biopharma EFRs, and other financial terms, over the past three decades.
Keywords: Royalty rates, biopharma, FOIA released, tiered royalties, EFRs
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