presented by: rand brenner president & ceo licensing ... · •50k+ patents filed 2015-2018...

Presented by: Rand Brenner

President & CEO Licensing Consulting Group

Med Tech startups and entrepreneurs

who understand the pain points of

large healthcare companies, create an

innovative solution, and develop it into

a scalable product or service can

achieve big financial success through

licensing and other partnerships.

How to License Your Med Tech IP


The Med Tech

Industry

Why Use Licensing

When to License

How to License

Getting Paid Wrap Up &

Q&A

Consulting & Strategy

Licensing & Compliance

IP Audit & Due Diligence

Oral health care blue light

Hammertoe Fusion Device

Balance platform

Adjustable Arm Sling



Intellectual Property

And

Licensing

IP

Know How


Registered Unregistered

Fast Growing Industry • $800 Billion by 2030

Fast Changing Industry • Customers, Payers & Providers

Shorter Tech Lifespans • 18-24 Months

New Tech Rapidly Entering Market • 50K+ Patents Filed 2015-2018

Complex Product Development • Technologies and Regulatory Approval

Growing Competition From Big Players • Pharma, Med Device, Consumer, Hi

Tech


R&D too slow

R&D too much money

Lack innovation organization

Not risk takers

Can’t Incubate their own IP


External Partnerships

80%

Internal R&D 20%

Medical Device Product Development

Source: Forbes survey of major medical device companies, January 2015


Hydrocision, Procept BioRobotics ink licensing deal

• Global deal for urological pump cartridge tech

Delcath inks European licensing deal for Chemosat

• Liver chemo infusion technology

NuVasive inks spinal tech IP licensing deal with Biedermann Tech

• Rights in Germany

Covalon inks $4m licensing agreement

• Global deal for antimicrobial medical coating technology

Source: 2019/2018 MassDevice.com


Market directly?

License it out?

Use both strategies?

3 Med Tech Licensing Strategies

Direct Markets • Rehab

• Medical Clinics

Standing Desks

Video Games

Security Training

Licensed

Markets How to License Your Med Tech IP


Time

-$

M

on

ey/C

ash

Flo

w

$$

$

My Money

Other Peoples

Money

Licensing

Legal

Prototype

Test Market

Sales


Licensing is a Process

A License is a Legal Agreement

Research and Contact

Present and Discuss

Negotiate Deal Terms

Sign Agreement

Manage Partnership



Maybe market leaders

Focus on second and third tier companies

Who’s entering the market

Time consuming

Finding right person

Getting response


Be concise

Problem/solution or cost /profit

One or two sentences intro email


What Problem Does it Solve

How it Works

Why it’s Better, Faster, Cheaper

Does it Increase Revenues,

Lower Costs, Reduce Liability


Asking for an NDA

Before They Know

What it Is Results in

No Discussion

Anymore

• Rights to Use, Make, Sell, Dist. What is

Licensed

• Exclusive / Non – Exclusive How it’s Licensed

• Application, Market or Territory Where it’s Licensed

• Term of the patent (or less) How Long it’s

Licensed


Specifies Rights

Calculates Payments

Details Responsibilities

How it Ends


• The right licensing partner Most

Important

• Benchmarks, milestones & payments

Performance Based

• A bad deal is worse than no deal Win-Win



High Royalties

• Big Markets

• Ready to Go

• High Margins

Low Royalties

• Small Markets

• Developing IP

• Low/Unknown Margins

Tech Status Risk Royalty

Low

Royalty

High

Raw Idea Extreme 0%

Patent Pending Extreme 0% 1%

Issued Patent Very High 1% 2%

Prototype (pre Clinical) High 2% 3%

Clinical Trials High 3% 4%

FDA Approval Moderate 5% 7%

On the Market Low 8% 10%+

Source: Novelint LLP


Med Devices & Diagnostic

Source: IPRA Inc. 2016 Royalty Rates for Med Devices and Diagnostics

Upfront Fees


Agreement Term Diagnostic / Med Tech Device

Up Front Fee $25,000 - $50,000

Milestone Payments* Varies - $0 - $Millions

Royalty Rate 0.5% - 7%

Min. Annual Royalties* $20,000 - $100,000

* Depends on technology.

Source: The Business of Bioscience (2009).


Just a patent

No market validation

Wrong information

No legal/professional advice How to License Your Med Tech IP

Prove it works

Find the right company

Use appropriate information

Don’t tell stories – Solve problems


Contact Information

Rand Brenner

Licensing Consulting Group

[email protected]

www.licensingcg.com

Tel: (646) 395-9572

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presented by: rand brenner president & ceo licensing ... · •50k+ patents filed 2015-2018...

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