Significant Uptick In Royalty And Patent Stream Monetizations

One of the areas where Cadwalader has seen a significant pickup in activity levels in 2013 and early 2014 is royalty and patent stream monetizations. In 2013, we helped clients complete 10 royalty and patent monetization deals in the pharmaceutical and technology spaces. The most important motivators for clients entering into these deals include:

• allowing sellers to monetize existing long-term revenue streams sitting on their balance sheets without raising on-balance sheet debt; and
• allowing buyers to gain exposure to otherwise unavailable asset classes.

These deals covered a wide variety of participants and structures—including one 144A offering, two §4(2) private placements, two acquisitions by royalty funds, and two strategic transactions—and allowed sellers to: