Deals & Value

The case for royalties

Many of the successful companies that began with royalties - including Alza Corp., Biogen Inc. and Elan Corp. plc - ultimately decided that they needed proprietary products to become sustainable, high-growth businesses.

Nevertheless, royalty-based revenue streams can help get a company started. And for many companies in their early years, royalty-based partnerships may be the only option for getting products to the market.