Analysing Patent Terms and Citations to Determine the Value of Gene Therapies
Keywords:1, gene therapies, 2, patent citations and 3, market value & capitalization
Gene therapies hold great promise for treatment of diseases but so far their market authorisation has been limited. This paper describes the development of patented gene therapies in the sector of life sciences and health. It was found that the annual number of patented gene therapies increased significantly till the year 2005. A cluster analysis of gene therapies patented in 1995 shows that: a) more than eighty percent has been renewed for more than fifteen years (fifty three per cent till the maximum patent term) and b) fifty per cent of the patents have been licensed. There is a statistically significant correlation between the numbers of citations in future patent applications by third parties and the number of years of patent renewals.
A case study of the patent EP 0833934 of biotechnology start- up Crucell demonstrates that the number of citations by third companies to this patent even predicts the companies’ market capitalization. This research yielded evidence that the number of patent citations can be used as indicator to determine the value of gene therapies. Such information is of relevance for both the patentee and investors.
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