Commercialisation opportunities identified through qualitative IP portfolio assessment
The client, a multi-national petrochemical company headquartered in Latin America recognized early on that environmental regulations would drive up the cost of gas propellants used in certain drug delivery mechanisms. In a bold move away from the core gas distribution business, the client invented, patented, and tested new drug formulations deploying a new gas. As a result, the client was interested in selecting the optimal commercialisation strategy to maximize the substantial new business opportunity enabled by the IPR.
The client engagement began with a systematic, qualitative assessment of various viable commercialization strategies. Regulatory requirements, patent life, and potential partners/licensees were all carefully considered. This process included the review of a full spectrum of models from the outright sale of the IP through IP licensing and the creation of a joint venture. To illustrate potential outcomes, a comprehensive parametric financial model was created to enable the quantitative comparison of the various commercialisation models.
During the information gathering phase, two of the client’s senior executives spent a day going through IP assets with ClearViewIP. Strategic alternatives for commercialisation were then explored and the client was provided with multiple valuation models illustrating various potential outcomes. The CEO, CFO, and senior executives were presented with the various commercialisation strategies and valuation models which led to a fully-developed licensing strategy.
The client was able to negotiate licensing agreements with two blue-chip global pharmaceutical companies in respect of a limited set of specific formulations. The client is currently in ongoing discussions with other prospective licensees for the remaining formulations. This will lead to royalty income within five years with an expected net value in the hundreds of million dollars.