If you are experiencing problems downloading PDF or HTML fulltext, our helpdesk recommend clearing your browser cache and trying again. If you need help in clearing your cache, please click here . Still need help? Email help@ingentaconnect.com

Patent-backed securities in pharmaceuticals: what determines success or failure?

$48.00 plus tax (Refund Policy)

Download / Buy Article:

Abstract:

Recently, there has been growing interest in new financial tools that leverage on intellectual property assets, such as patent-backed securitizations (PBSs). In this paper we study the potential determinants leading to the success or failure of securitization deals having patents as underlying assets. We develop a conceptual framework that we test on two well-known US patent securitization deals in the pharmaceutical industry, by using a fuzzy set approach. Results highlight that factors related to the market size, level of competition and expected market life of the assets underlying a PBS can reasonably increase the probability that a deal will succeed. Moreover, a higher quality of the underlying invention and longer patent residual life are likely to reduce the risk of technical obsolescence and sales losses. Finally, the strength of the credit enhancement mechanisms, the flexibility of the deal architecture and the adoption of a diversification strategy are other key factors determining the success of the securitization.

Document Type: Research Article

DOI: http://dx.doi.org/10.1111/j.1467-9310.2011.00646.x

Affiliations: 1: ICM Advisors, Via Giovanni Prati 1, Torino 10121, Italy., Email: cristina.odasso@icm-research.com 2: Politecnico di Torino-DISPEA, Corso Duca degli Abruzzi 24, Torino 10121, Italy., Email: elisa.ughetto@polito.it

Publication date: June 1, 2011

Related content

Tools

Favourites

Share Content

Access Key

Free Content
Free content
New Content
New content
Open Access Content
Open access content
Subscribed Content
Subscribed content
Free Trial Content
Free trial content
Cookie Policy
X
Cookie Policy
ingentaconnect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more