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Narcolepsy — Deal Benchmarks & Valuation

Median Upfront
$307M
Range: $153M - $465M
Total Deal Value
$2.7B
Range: $1.6B - $3.8B
Royalty Rate
12% - 19.1%
Tiered up to 23.1%
Dev Milestones
$797M
Range: $488M - $1.1B

Market Analysis

Narcolepsy is one of the most actively transacted indications in neurology licensing. Phase 2 deals for narcolepsy carry a median total deal value of $2.7B, with upfront payments ranging from $153M to $465M. The recommended deal structure allocates approximately 11% to upfront payments and 89% to milestones.

Milestone structures for narcolepsy deals allocate $797M to development milestones, $869M to regulatory milestones, and $748M to commercial milestones. Royalty rates range from 12% to 19.1% at the base tier, with tiered escalation reaching 16%-23.1% on peak sales.

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Frequently Asked Questions

What are typical deal terms for narcolepsy licensing?
Phase 2 narcolepsy licensing deals average $307M in upfront payments with $2.7B total deal value. The 11/89 upfront/milestone split reflects the risk profile at this clinical stage.
What royalty rates are standard for narcolepsy deals?
Base royalty rates for narcolepsy transactions range from 12% to 19.1%, with tiered escalations reaching 16%-23.1% on peak sales. Rates are influenced by mechanism differentiation, competitive positioning, and territorial scope.
How are narcolepsy deal milestones structured?
Narcolepsy deals allocate approximately 89% of total deal value to milestones. Development milestones ($797M) make up the largest share, followed by commercial milestones ($748M) and regulatory milestones ($869M).
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