Analysis of Average Royalty Rates in Pharma by Phase and Therapy Area. Royalty payments are an essential component of most pharmaceutical deals. Along with upfront payments and milestones, companies are rewarded for surpassing certain developmental hurdles. A properly structured deal will achieve a balance among these financial payment types. This begs the question of what is the proper royalty rate to be paid to the product owner or originator. In order to address this, an analysis of historical royalty rates in the pharmaceutical sector was assembled using Medtrack®’s Royalty Analyzer.
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