Royalty rate assessment for leading medical device manufacturer

Stout was engaged by a leading orthopedic device manufacturer to assist the company in developing appropriate royalty rate models to compensate surgeons and other health care professionals that assist in developing new products.  An analysis of comparable royalty rates and profitability was undertaken to establish the reasonable royalty.  The engagement was required to comply with the terms of a settlement between the client and the U.S. Department of Justice for the manufacturer’s suspected kickback payments to hip and knee surgeons. Client was charged with using various financial arrangements to induce orthopedic surgeons to exclusive use the company’s hip and knee replacement joints to maintain/increase market share.  

Related Professionals

All Related Professionals