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What should a license cost?

Many drug development projects stem from licensing an invention or product. Agreeing on the cost of the license is critical to the licensee to assure that the project is economically feasible. The licensor is interested in maximizing the value of the invention.

How do you arrive at the terms? One handy source to learn how to compute the terms was suggested by a friend. The AUTM (The Association of University Technology Managers) has a web page with a manual and an Excel spreadsheet designed for pharmaceutical deals.