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Obesity — Deal Benchmarks & Valuation

Median Upfront
$935M
Range: $509M - $1.4B
Total Deal Value
$4.5B
Range: $2.9B - $6.1B
Royalty Rate
16.1% - 29.5%
Tiered up to 33.5%
Dev Milestones
$647M
Range: $438M - $857M

Market Analysis

Obesity is one of the most actively transacted indications in metabolic licensing. Phase 2 deals for obesity carry a median total deal value of $4.5B, with upfront payments ranging from $509M to $1.4B. The recommended deal structure allocates approximately 21% to upfront payments and 79% to milestones.

Milestone structures for obesity deals allocate $647M to development milestones, $791M to regulatory milestones, and $2.2B to commercial milestones. Royalty rates range from 16.1% to 29.5% at the base tier, with tiered escalation reaching 20.1%-33.5% on peak sales.

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Frequently Asked Questions

What are typical deal terms for obesity licensing?
Phase 2 obesity licensing deals average $935M in upfront payments with $4.5B total deal value. The 21/79 upfront/milestone split reflects the risk profile at this clinical stage.
What royalty rates are standard for obesity deals?
Base royalty rates for obesity transactions range from 16.1% to 29.5%, with tiered escalations reaching 20.1%-33.5% on peak sales. Rates are influenced by mechanism differentiation, competitive positioning, and territorial scope.
How are obesity deal milestones structured?
Obesity deals allocate approximately 79% of total deal value to milestones. Development milestones ($647M) make up the largest share, followed by commercial milestones ($2.2B) and regulatory milestones ($791M).
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