USE CASE - PHARMA AND LIFE SCIENCES
Pharma and life sciences
Know which partners carry the weakest terms before the next negotiation instead of finding out from a retrospective audit.
THE PAIN
Under reporting, found too late
A head of alliance management, licensing, or royalty accounting holds a portfolio of out licenses and collaboration agreements, each with a royalty formula on net sales, gross sales, or sales plus sublicense income, each amended over a long life, each with a different partner reporting against it.
Royalty under-reporting is estimated industry-wide at 85% to 90% of licensees, and the market's only answer today is a periodic professional services audit: expensive, retrospective, and hard on the relationship. What they fear is the leakage they cannot see, and the audit they cannot afford to run on every partner .
Is every licence paying you what it should?
Three yes or no questions. About 30 seconds.
Question one of three
If a licensee asked which royalty formula applies to them today, would someone need to rebuild it from the original licence and every amendment since?
Question two of three
Do your licence terms vary across licensees in ways nobody has compared side by side?
Question three of three
Do you rely on a periodic royalty audit, after the money has been paid, to find out whether a licensee reported correctly?
Your results
If you answered yes to any of these questions, book a call with Consolidocs today.
Book a callTHE PREVENTION
Open with CD Truth, scale into CD Playbook and CD Performance
CD Truth consolidates every license into one current position. CD Playbook compares terms across licensees and shows which deals carry the weakest terms, by the way, rather than after. Once CD Connect and CD Performance are live, reported royalties are checked against the license formula continuously, replacing the manual audit.
The consolidated database. What you actually have, and whether it holds together.
Your own contracts compared against each other, then future drafts screened against the result.
ACROSS THE BUSINESS
Leakage caught before the next negotiation, not after
Alliance management or licensing gets every license consolidated and compared. Finance or the head of royalty accounting gets the leakage surfaced instead of discovered. Legal gets a playbook the whole portfolio can be checked against.
NOBODY ELSE DOES THIS YET
No software rival reads the signed license. The only alternative today is a consultant, engaged after the money has gone.
COMMON QUESTIONS
Answers directly
How do we keep every licence and amendment current?
CD Truth consolidates the licence estate into one current database, with missing documents and inconsistent amendments surfaced.
Which licensees carry our weakest terms?
CD Playbook compares terms across licensees, so the weakest agreements are visible before the next negotiation.