Royalty Monetization

While royalty monetization is attractive to life science company investors because of its flexibility to structure agreements to meet performance goals for getting complex therapies to market, there are multiple tax considerations in these agreements.

Our royalty monetization team focuses on representing clients in the purchase and sale of, or financing backed by, interests in royalty and synthetic streams relating to life sciences and pharmaceutical products. We have deep experience in transactions that involve contingent considerations such as royalty payments and milestone payments.

Our experienced lawyers work with investors on every tax issue arising from these transactions, structuring them in a tax-efficient manner and performing technical and legal diligence on underlying intellectual property to mitigate potential market risk. We draw support from related practices throughout the firm, including corporate mergers and acquisitions (M&A), investment management, intellectual property, regulatory and health care and life sciences, as needed to handle all aspects of a deal.

Combining this multidisciplinary approach across a full-service global law firm, our royalty monetization lawyers represent investors in a wide range of transactions, including:

Assisting with the purchase and sale of royalty, synthetic royalty or milestone payments relating to life sciences and pharmaceutical products, including in strip, tail or capped transactions.
Handling recourse and nonrecourse secured financings, whereby loans are supported by royalty, synthetic royalty or milestone payments owed to borrowers under license or other agreements and/or intellectual property in pharmaceutical products.
Working with clients owning pharmaceutical and life sciences products in sale transactions involving contingent consideration, including royalty payments or milestone payments such as asset sales, stock/equity sales or mergers with public and private parties.
Representing fund sponsors in the structuring, formation, capital-raising and operation of royalty investment funds and related regulatory matters. We also advise royalty fund clients in initial public offerings and admission to trading on stock exchanges.
Supporting clients in royalty monetization transactions by performing technical analysis and due diligence of underlying intellectual property portfolios, including:
- Conducting status, title and lien searches for registered and pending intellectual property to ascertain proper and documented ownership.
- Identifying the existence of any recorded third-party interests, as well as the current status and validity of any issued patents, registered trademarks and copyright properties.

Combining this multidisciplinary approach across a full-service global law firm, our royalty monetization lawyers represent investors in a wide range of transactions, including:

Assisting with the purchase and sale of royalty, synthetic royalty or milestone payments relating to life sciences and pharmaceutical products, including in strip, tail or capped transactions.
Handling recourse and nonrecourse secured financings, whereby loans are supported by royalty, synthetic royalty or milestone payments owed to borrowers under license or other agreements and/or intellectual property in pharmaceutical products.
Working with clients owning pharmaceutical and life sciences products in sale transactions involving contingent consideration, including royalty payments or milestone payments such as asset sales, stock/equity sales or mergers with public and private parties.
Representing fund sponsors in the structuring, formation, capital-raising and operation of royalty investment funds and related regulatory matters. We also advise royalty fund clients in initial public offerings and admission to trading on stock exchanges.
Supporting clients in royalty monetization transactions by performing technical analysis and due diligence of underlying intellectual property portfolios, including:
- Conducting status, title and lien searches for registered and pending intellectual property to ascertain proper and documented ownership.
- Identifying the existence of any recorded third-party interests, as well as the current status and validity of any issued patents, registered trademarks and copyright properties.