Medical Patents: When to Hold ‘Em, When to Fold ‘Em, or When to Transfer ‘EM

Medical Patents Broker Inc.
By Kenneth Pearce, President

Medical Patents are like gold coins used to transfer technology to the patient. Whoever owns the coin holds the building block. Unless they are an Olympian, the patient does not win gold; instead, the patient receives the golden treatment.

While many argue that health and wellbeing are our greatest assets. That is part of the truth, when we feel ill, it is a “mean time,” and that pain often ripples out to others. By transferring those gold coins at the right time, we create a chain of events that leads to priceless treatment for those in need.

What’s the Best Strategy?

No single one is absolute, but here are the conditions to watch for:

1. When to Hold 'Em

Tangible inventions must flow from the intangible patent for anyone to benefit. You hold when:

• Core Technology is Solid: You are showing strong clinical efficacy and the regulatory pathway is clear.
• Keep on Keeping On: Your core technologies are robust enough for more than a single invention. Expand the original invention into other areas of treatment or non-medical uses.
• The 5X Rule: When you see a path to a 5X ROI or better, the decision speaks for itself.

2. When to Fold 'Em

Sometimes, the most strategic move is to let go:

• Zero Market Interest: No third-party is willing to buy or license the patent.
• Market Saturation: Competitors have garnered 93% of the market share, and your maintenance expenses exceed your sales.
• No Man’s Land: Following an FDA nationwide recall or a devastating 48-hour media cycle regarding safety, it’s time to abandon ship. At this point, your resources are better spent on defense than on a compromised asset.

3. When to Transfer 'Em

Transferring is the ultimate move for profit and progress:

• Profitability: Anytime a third-party is willing to purchase or license for an acceptable ROI. Successful businesses are built on a continuous stream of profits that outweigh the losses.
• The Capital Gap: You have a great core invention but lack the capital to complete testing and marketing.
• The Reality Strike: When the dream is gone for you, but the asset still has value for someone else.

The President’s Viewpoint

I have not sat down at a poker table in 50 years. In poker, it’s much easier to take your winnings or losses and walk away. In the medical patent world, the stakes are much higher. Knowing when to keep the dream alive and when to let it rest in peace is the difference between a successful owner and a gambler.