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An overview of debt and royalty financing structures for life sciences businesses

6 May 2025 / Author(s): Peter Schwartz , Adrian Chiodo , Alexander Clarke , Nancy Marie Rich
Issue: May 2025 / Categories: Feature

As a supplement to equity capital and licensing and collaboration revenues, there is an increasingly broad array of evolving methods for life sciences companies to raise money to fund their drug development and commercialisation activities. These include venture lending, growth lending, synthetic royalties, drug development financings and royalty monetisations. Each of these are available to life sciences companies in different stages of development, have unique structures, involve varying degrees of contractual restrictions, and provide different risk/return profiles for investors. In this article the authors consider these key methods for raising non-dilutive financing.

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