Handling a Royalty Stream Monetization Deal

We represented a patent owner who had licensed intellectual property to a pharmaceutical company.

We helped our client negotiate and successfully close a transaction that granted an undivided 50% interest in the royalty stream from the pharmaceutical company to two affiliated private equity firms in New York.  The deal provided our client with upfront cash payments, as well as milestone payments as the sales of the patented drug reached certain sales levels worldwide. 

The transaction has enabled our client to use the upfront and milestone payments for working capital purposes, while still receiving the benefits under the license arrangement.  The documentation for this transaction included two Agreements for Sale and Assignment of Revenue Interest, Bills of Sale, Security Agreements, Disclosure Schedules, and Legal Opinions.