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

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.,...