Intellectual Property and Assessing its Financial Value

140

Intellectual Property and Assessing Its Financial Value

Another approach to bring the NPV into positive numbers (Figure

6.9) is to work on the related costings, e.g. reduce the clinical trial costs

by organizing trials in lower-cost countries, do the trials more efficiently,

use existing infrastructure and equipment for production of the new

product/technology, etc. Hence studying all the different parameters and

their effect on NPV is highly recommended. Excel models make this

quite easy using functions such as “Goal Seek” and “Scenario Manager”.

Dividing the intrinsic value

Let us now look at how the intrinsic value of the new IP can be divided ...