Big Royalty?

Roger Baird rbaird at fred.net
Sat Feb 11 07:30:40 EST 1995


dnahunter at aol.com (DNA Hunter) wrote:
>What is the normal royalty for licensing a finished molbio reagent, that
>is currently on the market, to another company for manufacturing, dist.,
>and marketing? Total market worldwide in '95 is $30 million and this
>product beats the competition hands down.

Royality fees vary depending on the market potential of the product.
Usually there is an upfront fee then a percentage of net sales.  Upfront
fees can be $10k-$200k for a research product and 4-7% of netsales
as a typical royality.  But (and this is a big BUT) you have to prove that
the market is worth what you say it is - and believe me, you are probably off
by an order of magnitude (and that's not up, but down).

rb



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