The Value of Intangible Assets

At the core of this transfer pricing dispute was the relative contributions to profits of two intangible assets: marketing and R&D. Cambridge Finance Partners worked for over two years with six testifying experts including Noble Prize winner Joseph Stiglitz. Analysis involved a comprehensive study of all phases of the pharmaceutical value chain from basic science, research, development and clinical testing to marketing, distribution and production. Research involved econometric and financial analysis of the universe of data related to all the markets involving one of the largest pharmaceutical companies in the world and the review of tens of thousands of company documents. Testimony measured inter-company transfer prices for all company products, returns to marketing investments, the value of research and development investments and the contracting for and structure of venture capital investments in early stage biotech and pharmaceutical investments. After ten years of dispute, the case resulted in a historic settlement.