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how much is the ideal royalty payment in pharmaceutical industry
29 Feb 2024

How much is the ideal royalty payment in pharmaceutical industry?

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A royalty payment is made to the legal owner of the property, patent, copyrighted work, or franchise by licensees or franchisees who wish to make use of it for the purposes of generating revenue or other such desirable activities.

In Pharmaceutical Industry, Royalty rates vary per industry, but a good rule of thumb is between 2-3% on the low end, and 7-10% on the high end. You will be finding the ample example on the licensed pharmaceutical products for as low as 3% and as high as 7%, with 5% being the most common and a generally a decent royalty rate.

However, above figures are just approximation, actual royalty should be finalized based on each cases.

 

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