Three researchers at Cincinnati Children’s Hospital Medical Center developed technology leading to the commercialization of Rotarix®, GlaxoSmithKline’s oral vaccine to prevent rotavirus infection. At the time of the monetization, the product had received approval in Mexico, the first of an expected series of worldwide approvals. However, it had been more than twenty years since these researchers had started their rotavirus research and they believed that it was time to monetize their success, while retaining a considerable portion of the upside potential.
The Fund structured a royalty monetization for these individuals, which allowed them to sell a portion of their royalties on Rotarix and realize capital immediately. The inventors also retained a significant portion of the royalty payments, enabling them to participate in Rotarix’s future success.
The agreement with Paul Capital Healthcare enabled these three researchers to reduce their financial risk in the event the product does not perform as expected. The funds also allowed them to diversify their investment portfolio and begin estate planning earlier than expected.
