How to Value and Sell a Pharmaceutical Product Licence or MA

Overview of How to Sell a Pharmaceutical Product Licence

For many niche and mid-sized pharmaceutical businesses, a single product licence, whether a branded medicine, a generic MA, or an OTC line, can represent significant hidden value. Yet these assets are often underutilised or simply non-core, sitting quietly in a portfolio while management focuses elsewhere.

At Eclipse, we support UK and European pharma companies looking to sell or divest product licences, whether for strategic focus, capital release, or exit planning. Here's what you need to know.

What Is a Product Licence Sale?

A typical transaction involves the transfer of rights to a specific marketed product, including its marketing authorisation (MA), regulatory dossier, and commercial IP, to another party better positioned to maximise its value.

These assets may be:

• Mature products with declining sales but loyal prescriber bases

• Niche generics or branded generics with stable, local demand

• Products that require commercial or regulatory investment the current owner can no longer justify

• Surplus or non-core lines post-M&A or restructuring

How Are These Assets Valued?

The most common valuation approach is a Discounted Cash Flow (DCF) model based on forecast revenues, margins, and remaining product lifecycle, particularly if exclusivity remains.

In practice, most deals are benchmarked using sales multiples:

• Declining or off-patent assets: typically 1–2x last 12-month sales

• Stable or slow-decline products: 2–3x

• High-growth, niche, or still-protected products: up to 4–6x

Deal terms often include a mix of upfront and earn-out payments, allowing both buyer and seller to share in the risk and reward.

What Kind of Buyers Are Active?

• Specialty pharma firms looking to build out portfolios in niche areas

• Private equity-backed consolidators focused on “tail” assets or legacy brands

• Regional players seeking licences to expand geographically

• CDMOs and service providers moving closer to commercialisation

Buyers are typically looking for known revenues with low technical risk and a clear route to distribution.

How We Can Help

Eclipse offers a tailored advisory service for businesses considering the sale of one or more product licences. Our support typically includes:

• Preparation of marketing materials and buyer pack

• Targeted buyer outreach

• Negotiation and deal structuring

• Full process management to completion

We act solely on your behalf, providing independent advice and market insight to maximise value and ensure a smooth process.

Thinking of Selling a Product Licence?

If you're considering selling a pharmaceutical product licence, we’re always happy to have a confidential discussion about whether a licence sale might be right for your business, even if you’re still exploring options.