Law firm Morrison & Foerster launched a new quarterly publication, MoFo Biometer, that indexes average up-front payments in licensing, collaboration, and development agreements between biotechnology companies and companies that pay for commercialization rights.
The first edition of the newsletter shows that licensees—the companies paying for commercialization rights to the asset—have generally become more interested in later-stage assets.
In the first quarter of 2012, the biotech market saw increases in the percentage of transactions involving approved products, with average upfront payment values hitting $90 million across 13 transactions.
Between 2006 and 2012, Morrison & Foerster found the average up-front payment in licensing, collaboration, and development agreements was $35.5 million.
The increase is consistent with anecdotal observations, the firm says.