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Added Value Model

As your business partner FOCUS IP will develop and manage with your value generation for your invention.

A key milestone determining success for licensed products is Clinical Proof of Concept (PoC), when the product candidate has shown its therapeutic efficacy in patients. At this stage, the product candidate could fetch as much as 10 times its investment (in licensing cost plus R&D expenditures). Typically, it takes about 2-3 years for a product to be developed and licensed out after clinical PoC.

In the following schema, typical deal metrics are shown that illustrate the tremendous value created by such a business model.


In-licensing and out-licensing deals typically consist of an upfront payment, milestone payments linked to future development steps and royalty payments that become due when the product is launched in the market.

As a percentage of the headline value of the deal, upfront payments are about 10% of deal size – the rest are stacked as milestone payments and royalties. The average industry deal size rose to USD 350m in 2007 representing a 50% increase year-on-year compared to 2006 figures – a trend that has been maintained.