Financial Terms
Milestone Payment
Contingent payments triggered by the achievement of specific development, regulatory, or commercial events. Milestones align incentives and reduce risk for licensees.
Related Terms
Development Milestones
Payments triggered by clinical development achievements such as IND filing, Phase 1/2/3 initiation, Phase 2/3 data readout, or successful completion of pivotal trials.
Regulatory Milestones
Payments triggered by regulatory achievements such as FDA acceptance of BLA/NDA, FDA approval, EMA approval, or approvals in other major markets (Japan, China).
Commercial Milestones
Payments triggered when cumulative net sales reach specified thresholds (e.g., $500M, $1B, $2B). Also called sales milestones.
See How Milestone Payment Affects Deal Economics
Model deal terms with real benchmark data from 3,000+ biopharma transactions.