PROTAC & Targeted Protein Degrader Deal Benchmarks

Targeted protein degradation has emerged as one of the most actively partnered modalities in oncology, with PROTAC and molecular glue deals commanding significant deal values even at Phase 1. PROTAC deals achieve a median total deal value of $1.0B, with upfront payments ranging from $48M to $175M. The ability to degrade previously undruggable targets drives strong pharma interest.

Due to the early clinical stage, PROTAC deal structures are heavily weighted toward milestones. Development milestones average $364M, reflecting the extensive de-risking required around oral bioavailability, E3 ligase selectivity, and catalytic degradation efficiency. Regulatory milestones of $319M reward progress toward approval.

Royalty rates for PROTAC deals start at 8.9%-15.7% base rates, with escalation reaching 19.7% on peak sales. The 10/90 upfront/milestone split reflects the platform potential to address multiple targets beyond the initial licensed asset.