Pricing models for fine chemicals

The classical royalty model has long been the norm, and is still well accepted for the manufacture of fine chemicals or commodities where the production costs are a very significant part of the final price of the product. However, our experience is that this model is not well accepted in the Life Science Industry and often presents a real hurdle for the application of proprietary technology for the production of new chemical entities. The all-inclusive model takes care of these concerns, and allows the customer to compare competing solutions on the basis of actual costs as well as of their potential for improvement. The same is true for volume-independent payments, and for both methods all process improvements totally benefit the customer s bottom line and are not reduced by increasing royalty fees. 

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