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J. Open Innov. Technol. Mark. Complex. 2018, 4(3), 30; https://doi.org/10.3390/joitmc4030030

Evaluating Determinant Priority of License Fee in Biotech Industry

1
Graduate School of Health Science Business Convergence, College of Medicine, Chungbuk National University, 1 Chungdae-ro, Seowon-Gu, Cheongju, Chung-cheongbuk-do 28644, Korea
2
Department of Computer and Telecommunications Engineering, College of Science and Technology, Yonsei University, 1 Yonseidae-gil, Wonju, Gangwon-do 26492, Korea
*
Author to whom correspondence should be addressed.
Received: 11 June 2018 / Revised: 15 July 2018 / Accepted: 27 July 2018 / Published: 2 August 2018
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Abstract

This research aimed to build a solid basis through analytic hierarchy process (AHP) analysis to develop a reliable and practical valuation model that reflects the characteristics of the biotech industry and propose a reference formula to estimate the license fee by drug class for potential business transactions. In this study, we reviewed 135 related studies and found 167 related determinants. We surveyed 25 or more specialists in the biopharmaceutical industries. The survey group consisted of National Research Institutes (‘Group 1’), Companies (‘Group 2’), and Government Agencies–Universities (‘Group 3’). The average of the total group and Group 3 showed the same tendency at a Level 3 ranking, where the priority in determining the license fee was arranged in the order of ‘the market factor, the technology factor, the financial factor, and the environmental factor’ in light of the factors, and ‘patent characteristics, licensee characteristics, and licensor characteristics’ for the characteristics. We noted that the patent characteristics were primarily significant in technology transactions and their contract fee in the groups (Total, Group 2 and Group 3), followed by licensee characteristics. In terms of the in-depth index, we noted that the development phase and attrition rate, intellectual property tradability, and licensee licensing experience, followed by quality of technology, were the most influential determinants. View Full-Text
Keywords: technology valuation; AHP; license fee; license fee determinants; technology transfer; rNPV (risk-adjusted net present value); biotech industry technology valuation; AHP; license fee; license fee determinants; technology transfer; rNPV (risk-adjusted net present value); biotech industry
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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).
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Lee, J.H.; Sung, T.-E.; Kim, E.; Shin, K. Evaluating Determinant Priority of License Fee in Biotech Industry. J. Open Innov. Technol. Mark. Complex. 2018, 4, 30.

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J. Open Innov. Technol. Mark. Complex. EISSN 2199-8531 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
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