Tax > Royalty Monetization

Akin Gump Strauss Hauer & Feld LLP’s royalty monetization practice 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. Our royalty monetization lawyers specialize in acquisitions and dispositions of pharmaceutical and life sciences products, including transactions that involve contingent consideration, such as royalty payments or milestone payments. We structure these transactions in a tax-efficient manner and perform technical and legal diligence on the underlying intellectual property. Our investment management team members represent sponsors in the formation and operation of royalty funds and advise on related regulatory matters. The royalty monetization practice comprises corporate, mergers and acquisitions, tax, investment management, intellectual property, regulatory and health care and life sciences specialists. Akin Gump represents many of the key players in the royalty monetization field in a wide range of transactions, including:

Royalty Monetization Acquisition and Disposition Transactions—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. 

Royalty Monetization Financing Transactions—in 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.

Sale of Pharmaceutical and Life Sciences Products—clients that own pharmaceutical and life sciences products in sale transactions that involve contingent consideration, including royalty payments or milestone payments, such as asset sales, stock/equity sales, or mergers with public and private parties.   

Royalty Fund Formations and Initial Public Offerings—fund sponsors in the structuring, formation, capital-raising, and operation of royalty investment funds and related regulatory matters; additionally, royalty fund clients in initial public offerings and admission to trading on stock exchanges.

Intellectual Property Analysis and Diligence—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, and 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.