Challenge

A licensor of a marketed oncology drug needed support with monetizing its royalty stream. Alacrita was engaged to develop an independent market-based valuation of the product.

Solution

We built a multi-year forecast of future product sales in key markets, with specific consideration of the product value proposition and pricing, strength of patent protection, significance of non-patent protection, level of differentiation and competitive landscape, future market threats and opportunities. Using the model, we set out future royalty streams for the client, expressed in their present values based on a number of different scenarios. We also used the modeling to quantify the impact of key sensitivities to the product revenues and royalty stream.