The core element of a patent or technology transaction lies in its focus on the transfer of specific intellectual property (IP) and associated technologies, rather than the acquisition of an entire company. Intellectual property transactions are particularly relevant in the healthcare and life sciences sectors, covering areas such as medical technology (e.g., devices, products, robotics, and laboratory innovations), health IT (including telemedicine, medical software, artificial intelligence, and data solutions), pharmaceuticals and biotechnology.
In the highly regulated and innovation-driven healthcare industry, intellectual property is far more than a legal formality but it is a strategic asset. Patents, licenses, trade secrets, copyrights and proprietary technologies serve as critical levers for protecting innovation, securing defensible competitive positions, and attracting capital for ongoing R&D.
There are scenarios in which valuable technologies are developed within organizations that are either strategically misaligned or operationally unprepared to commercialize them. In such cases, monetizing non-core or underutilized IP, whether through an outright sale or through licensing, can be both rational and accretive to enterprise value.
From the acquirer's perspective, the calculus is equally straightforward: how does one access differentiated technologies that create shareholder value, without enduring the cost, risk, and timeline of internal development? In many instances, the answer is self-evident: buy rather than build.
This mindset aligns two motivated parties — one seeking to unlock value from IP, and the other intent on gaining a competitive edge through acquisition.
ConAlliance's role is to bring these parties together, structure a deal that reflects the true value of the asset, and ensure execution with precision. ConAlliance has successfully advised numerous M&A projects in this context, both on the sell-side and the buy-side and combines technical acuity, sectoral depth, and transactional sophistication to deliver outcomes that redefine how healthcare IP is monetized and mobilized.
Beyond outright sales, alternative transaction structures such as strategic partnerships or licensing agreements are often employed to unlock mutual value while maintaining flexibility. Mastery of these nuanced transaction types demands a deep understanding of both the market dynamics and the intellectual property landscape, ensuring the strategic alignment of assets with overarching corporate goals. This approach underscores the sophisticated nature of such deals and reflects the precision and expertise required to navigate them effectively.
More information on Cooperations & Licensing in Healthcare M&A
ConAlliance is one of the world's leading M&A advisors on mid-sized healthcare transactions including intellectual property, technologies, and/or patents. Contact us to learn more about our ConAlliance approach.
M&A Transactions
In the healthcare industry, the sale of intellectual property (IP) plays a crucial role in the strategic direction and growth of companies. There are several notable examples of such transactions that highlight the importance of patents, licenses, and other IP rights.
The MedTech, Life Science, and Pharmaceutical Industries Remain Leaders in Patents—Both in Terms of Existing and Newly Filed Patents
Technology Sale
New technologies and future trends shape the development of medicine and healthcare: digitization, robotics, the Internet of Things, big data, artificial intelligence (AI), and deep learning.
Intellectual property (IP) in classical medicine is also frequently the subject of transactions in the context of M&A activities.
A notable example is the recent acquisition of a second royalty interest by DRI Healthcare Trust for worldwide sales of the drug ORSERDU® (Elacestrant). ORSERDU® is a selective estrogen receptor degrader used to treat postmenopausal women or adult men with ESR1-mutated ER+/HER2- metastatic breast cancer. This transaction, which includes ongoing royalties as well as milestone payments, demonstrates how IP sales are utilized to achieve long-term growth goals and enhance investments in high-quality, durable assets (Ocean Tomo) (DRI Healthcare).
Another example is the growing importance of IP valuations and transactions in the biopharma sector. Here, patents and other IP rights frequently change hands to promote the development and commercialization of new therapies. Large pharmaceutical companies are increasingly focusing on the quality of their patent portfolios, prioritizing high-quality patents over quantity. This strategic shift aims to strengthen innovation and maximize the value of the IP portfolio.
Additionally, sales of licensing rights and the monetization of patents are widespread in the healthcare sector. Companies like Ocean Tomo specialize in optimizing IP management and utilization. They assist healthcare and life sciences companies in refining their IP strategies and ensuring that patents and other IP rights are effectively leveraged to secure competitive advantages and increase market value.
Digital Health: In the digital health industry, which is growing through technologies such as mHealth applications, wearable devices, and telemedicine, intellectual property rights play a central role. Patents and copyrights protect innovative software algorithms and mobile applications that provide essential healthcare services. For instance, the introduction of wearable AI, such as smartwatches, has the potential to save lives and significantly reduce costs.
Pharmaceutical Patents: Large pharmaceutical companies are increasingly focusing on the quality of their patents, prioritizing high-quality patents. This strategic shift aims to strengthen innovation and maximize the value of the IP portfolio. Additionally, the abbreviation of new drug applications (ANDA) and the agreements on trade-related aspects of intellectual property rights (TRIPS) play an important role in protecting pharmaceutical innovations.
Healthcare Technology: Advisory firms forecast rapid growth in the segment of technology-supported healthcare services (HST), driven by the progressive adoption of technology in healthcare, with IP rights playing a critical role.
These examples illustrate that the sale and monetization of intellectual property in the healthcare industry are not only means of raising capital but also strategic tools for promoting innovation and securing long-term competitive advantages.