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| Biopharmaceutical sellers of royalty interests (including pharmaceutical, biotechnology, and medical device companies) pursue royalty financing to: |
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Fund future product development
Provides funding for investment in research, clinical trials, and manufacturing |
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Fund product acquisition
Provides capital to acquire new products or technologies |
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Fund product launch costs
Used to support product launch efforts, including creation of new sales forces, funding of advertising campaigns, or building manufacturing facilities |
| Royalty financing is an attractive alternative form of financing because: |
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Minimizes dilution
Provides a source of capital that is non-dilutive to EPS |
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More dependable and user-friendly than cyclical public capital markets
Provides a consistent and reliable source of capital; overall public market indicators and total company valuation play less significant roles in royalty financing. Transactions may also be customized to fit the needs and requirements of the company |
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Delays out-licensing
Allows a company to progress a drug candidate further in clinical development and therefore maximize value of future licensing deals
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