Industry: Medical Devices
A large medical devices company collaborates closely with physicians and specialists in order to create the highest quality implants for patients. As part of these collaborations, the company makes payments on more than 100 royalty relationships each quarter.
Some royalty contracts may take up to a year to finalize, and a royalty relationship can extend 30 years or more. With such complex agreements, the company’s CLM system simply couldn’t provide legal, finance or product development teams with a comprehensive and timely way to track obligations, ensure payment accuracy and mitigate risk.
So they enlisted the help of Pramata to consolidate, standardize and prioritize disparate royalty relationship documentation. With Pramata’s commercial relationship system of record, the company was able to:
- Map key terms across all of their contracts to data within their CLM and payments systems
- Enjoy complete confidence in the accuracy of the data
- Make better informed decisions and proactively manage royalty relationships for minimal risk and maximum value
- Due to their complex nature, not all contracts or updates to terms made it into the central repository
- Many departments required access to contract data, including legal, intellectual property, finance, product development and marketing
- Time-consuming searches attempt to piece together the most current relationship information from many sources
- Lack of confidence in the accuracy of some royalty terms and consequently, the accuracy of payments
- Pramata team digitizes documents, understands nature of the terms and conditions, normalizes data, and keeps royalty relationship terms updated daily
- Eliminated risk of litigation or revenue leakage due to over- or under-payments
- All authorized users have immediate access to specific relationship information that once took weeks to locate
- Pramata provides date-based alerts to notify key team members when royalty term expiration dates are near
- Provide auditors with easy access to complete, current data and eliminate the “all hands on deck” information search effort