Up Front Or Back End? Considering The Best Structure For Milestone Fees

PwC partner Dmitri Drone explained that a deal for an asset with high commercial expectations is best structured with more emphasis on pre-approval than post-approval payments. A post-approval focus on shared risk is more appropriate when an asset is licensed at an earlier stage of development.

Businessman comparing two documents, neutral background

If a biopharmaceutical company negotiates a license for an asset with significant commercial expectations for the drug candidate, it makes financial sense to structure a deal with higher upfront and pre-approval payments than fees that will be paid after commercialization, according to PwC Partner Dimitri Drone.

"Where you think the likelihood of getting to market is very high, [the licensee should] push the payments earlier, i.e.,...

Read the full article – start your free trial today!

Join thousands of industry professionals who rely on Scrip for daily insights

  • Start your 7-day free trial
  • Explore trusted news, analysis, and insights
  • Access comprehensive global coverage
  • Enjoy instant access – no credit card required

More from Strategy

More from Business