How does Numerate structure deals to share in the risk?
Our philosophy around pricing is simple. Any compound we successfully deliver should cost the partner a fraction of its in-licensing value.
We realize that partners may be uniquely constrained in terms of deal structures. We see a continuum between a fee-for-service (cash and no ownership) and a joint venture (ownership and no cash), and are open to trading-off along this continuum on a case-by-case basis as appropriate for our partner.
Our partnerships often fall in the middle of this continuum and include:
Low up-front costs. We cover a portion of our direct, external costs with an up-front payment. Typically, this payment covers the approximately 1 million computer hours we devote to each project.
Success-based milestones. At the beginning of each deal we define success: Design Acceptance Criteria, Lead Criteria, and Candidate Criteria. Advancing the program by meeting each of the predetermined criteria results in a milestone payment.
Limited downstream participation. As the partnership generates real value for our partner, Numerate is rewarded. Typically this is in the form of downstream milestones or royalties representing a fraction of the value of the IP delivered.
