What Makes a Medical Patent Extraordinary?

Medical Patents Broker Inc.
By Kenneth Pearce, President

For starters, it must be more than just patentable!

Many US Patents are just improvements over previous inventions. These can profit their owners—for example, a better surgical glove could generate millions. However, in these markets, the competition is intense, marketing and shelf space are costly, and some are resistant to change.

There are those inventions that are out-of-the-box and create excitement from the start. But that alone does not make the medical invention extraordinary. Out-of-the-box may not be commercially feasible—the current technology cannot make it marketable. Or it can take too long to reach the market so that when it makes it, the competition has a newer, "not as great" invention that has already captured an 80% market share. A great invention without any viable pathway to the patient winds up in the IP public domain cemetery.

To be in the running for the extraordinary:

1. The legalities must be clean. Potential buyers and licensees generally don’t touch "dirty laundry" or clouded titles.
2. The descriptions must be coherent. A scientist in the field should know how to make and use the invention without a decoder—the opposite of how many medical journals are published.
3. The potential market must justify the risk. There must be enough potential scale to warrant the gauntlet of the FDA.
4. The technology must be a clear game-changer. It needs to be different enough from current inventions to offset the massive costs to market.
5. The "Government Gatekeeper." It must be a standout that Medicare and Medicaid will pay for; private insurers generally follow the government's lead.
6. The Clock. At least 15 years before expiration for Class III, biotech, or pharma assets, plus the possibility of a Hatch-Waxman extension.
7. The ROI Reality. A buyer must see sufficient upside to justify wiring $1.5MM to $3.0MM to the owner’s bank when the only "paper trail" is the Patent Office.
8. Divine Intervention. Last but not least: a Divine Intervention from Above greatly improves the prognosis of both the medical patent and the patient. Now that’s extraordinary!