Jack Jianqing Lu Image

Jack Jianqing Lu

Founding Partner & Chief Economist

Intellectual Property Market Advisory Partners

Jack Jianqing Lu is the Founding Partner & Chief Economist of Intellectual Property Market Advisory Partners, LLC. Jack specializes in economic study, financial analysis, assets valuation, and strategic advisory for IP transactions & litigation, and for IP-intensive corporate transactions & disputes in financing, M&A, equity investment, and distressed assets investment. He serves as the Senior VP for Economic Analysis & Survey of the Licensing Executives Society (LES USA Canada).

Jack’s work has been published by the Council on Foreign Relations, Cambridge University Press, Business Economics, IAM Magazine, Licensing Economics Review, and Les Nouvelles, the Journal of LES International, and IPWatchdog. He co-authored the High Tech Royalty Survey Reports for three consecutive Surveys in 2011(the inaugural), 2014 and 2017, penning the chapters on economic and financial analysis.

Jack holds a B.E. in electrical engineering and M.Ph. in technology management. Jack studied economic policy and received his PhD from the University of Texas at Austin. He is a Chartered Financial Analyst (CFA) charter holder and a member of the CFA Institute, the National Association for Business Economics, and the LES USA Canada.

Recent Articles by Jack Jianqing Lu

LES 2021 Royalty Survey Reports: Licensing Market Update, a Look Back, and an LES Royalty Valuation Method in the Making

On September 26, Licensing Executives Society (LES) USA and Canada published the LES High Tech Sector Royalty Rates & Deal Terms Survey Report 2021. In May of this year, the 2021 Global Life Sciences Royalty Rates and Deal Terms Survey results were released. Together, the releases culminated the intense efforts by LES during the COVID-19 pandemic in preparing and launching the Surveys and in analyzing the data, presenting the results and writing the Reports. Not only do LES Royalty Survey Reports provide an update on the licensing market in the past few years, they look into the dynamics of market evolution since the 2000s. The Reports offer benchmark royalty data by various categories, such as technology field and IP type, which serve as invaluable references for licensing professionals. The 2021 High Tech Survey Report is also the only data source in the IP industry that quantifies and publishes royalty rate premiums or discounts such as exclusivity premium and advanced-stage technology premium. Through identifying and quantifying the value contributions of key license parameters such as exclusivity, technology development stage and IP type, among others, the LES team aims to develop a build-up method for royalty determination, analogous to the build-up method in business valuation.

Assessing How Much an Alzheimer’s Drug is Worth

On June 7, 2021, the U.S. Food and Drug Administration (FDA) gave the green light to Aducanumab, a drug developed by Biogen to treat early stage Alzheimer’s, despite the controversies surrounding its efficacy. Biogen stock price increased 38.3% on the day, adding $16.5 billion to the company’s market value. The news rippled across the pharmaceutical industry and lifted stock prices of most Alzheimer’s drug developers. As an example, Eli Lilly stock price jumped 10.2% on June 7, or a hike of $18.6 billion in market cap, because the company also has a similar drug candidate. Subsequently, as the controversies over the Aducanumab approval deepened, Biogen had lost $7 billion in market value by September 9. With all of these multi-billion-dollar numbers, one can’t help but wonder: how much is an Alzheimer’s drug worth? This article tries to assess the market value of an Alzheimer’s drug. It first estimates the implied values of Alzheimer’s drugs by looking into stock market reactions to major events associated with Biogen’s Aducanumab and Eli Lilly’s Donanemab. As a sanity check to the values derived from the stock market, a discounted cash flow (DCF) analysis is conducted to evaluate whether the stock market valuations are rational.