RE: Very quiet trading day yesterday23 Mar 2025 09:35
I’d be speculating, but with the help of chat gpt here’s a suggested outcome that could be plausible.
“Licensing fees for biotech platforms like Fusion Antibodies’ “Optimal” software (which likely supports antibody design or development) can vary significantly based on the value of the technology, stage of development, exclusivity, and potential applications. That said, we can look at typical ranges and comparables in the biotech software licensing space, especially with government or institutional partners like the U.S. National Cancer Institute (NCI).
1. Types of Licensing Fees Typically Involved
A license deal can include several components:
• Upfront fees: A one-time payment to access the platform
• Annual licensing or subscription fees: Recurring payments for ongoing access
• Milestone payments: Based on development, regulatory, or commercial achievements
• Royalties: A percentage of revenue if the platform contributes to a commercial product
2. Typical Ranges Based on Similar Deals
Here’s what comparable biotech software platform deals can generate:
Fee Type Range (USD) Notes
Upfront fee $250,000 – $5 million Depending on the uniqueness and readiness of the platform
Annual license $100,000 – $1 million/year For ongoing access to proprietary tools
Milestone payments $1 million – $50 million+ total Especially if the software helps develop new therapeutics
Royalties 1% – 5% of net sales If used in a product that reaches market
3. Specific Examples (Comparables)
• Schrödinger: Licenses drug discovery software and charges $100K–$2M annually, depending on the scope. They also have partnerships with milestone and royalty structures.
• AbCellera: Partners with pharma and earns platform access fees + downstream royalties and milestones tied to antibody development.
• Recursion: Uses AI-driven platforms and receives large upfronts ($1M+) and multi-million-dollar milestones in partnerships.
4. Government Collaboration Context
When licensing to government bodies like the NCI:
• Discounted or special-use terms might apply, especially for research or non-commercial use.
• Technology Transfer Agreements from NCI often include negotiated fair-market value license fees.
• If commercial rights are granted, the potential fees could resemble pharma deals, especially if the NCI co-develops a therapeutic that is later out-licensed.
5. Potential Deal Scenario
Assuming Fusion’s platform has strong IP, is ready for use, and the NCI intends to use it for commercially promising antibody work, a reasonable licensing deal might include:
• $500K – $2M upfront
• $250K – $1M annual license fee
• $10M – $30M in total milestones
• 2% – 4% royalties on any resulting therapies”
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