Medical Patent Valuation Mandate for Concession Agreement
Independent valuation of a portfolio of medical device patents conducted prior to the execution of a concession contract
Mandate Description
The objective of the mandate was to estimate the economic value of a portfolio of patents relating to implantable medical devices intended for surgical applications.
The valuation aimed to determine an independent reference value prior to the execution of a concession agreement, in order to ensure economic balance between the parties.
As part of the assignment, a comprehensive historical cost due diligence related to patent development was carried out.
This in-depth analysis made it possible to reconstruct all research, design, clinical trial and legal protection costs associated with the intellectual property.
The process, longer and more detailed than standard valuation assignments, formed part of a broader mandate entrusted by the client, encompassing economic, technical and legal analysis of the patent portfolio.
Key Issues
The main challenges of the mandate were to determine the economic value of a research-intensive technological asset.
A key issue involved identifying and valuing reconstructed historical costs, often spread across multiple financial years.
The valuation also required estimating expected future royalty and licensing income streams.
Finally, it was essential to ensure consistency between the technical, economic and legal value of the patents.
Approach and Results
The valuation relied on several complementary approaches.
- An income-based approach was applied, focusing on royalty savings and projected future concession revenues.
- A cost-based approach was implemented, strengthened by the comprehensive reconstruction of historical development, engineering and certification expenditures.
- A market approach was also used, based on recent transactions observed in the medical technology sector.
The analysis resulted in a robust and well-supported valuation range, acknowledged by the client and used as a reference in contractual negotiations with the industrial partner.
This assignment, which extended beyond the average duration of comparable mandates, illustrated the importance of combining financial analysis, technical audit and sector expertise when valuing highly complex medical patents.
The transactions shown include those completed by, or with the involvement of, Hectelion team members in current or previous professional roles. They are presented for illustrative purposes only and do not imply exclusive responsibility by Hectelion.
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The transactions presented were carried out by, with the contribution of, or with the participation of members of the Hectelion team in the context of functions performed currently or previously.