By monetizing all or a portion of the royalty stream, an inventor can reduce the financial risk due to product underperformance or removal from the market for safety reasons. Royalty interest financing allows inventors and researchers to secure funds today regardless of the product's future commercial success. If the inventor wants to sell only a portion of the royalty and would like to continue to participate in the royalty payments, he or she can opt for a partial sale.

Paul Capital Healthcare invests in healthcare products based on the following criteria:

• Are approved, are generating revenue or near commercialization
• Have an identifiable and established market
• Have patent and/or regulatory protection
• Are marketed by a strong organization

Paul Capital Healthcare does not require the product to have high growth or "blockbuster" potential.

Paul Capital Healthcare's financings are flexible in structure. These agreements enable an inventor to monetize all or a portion of the royalty or they can be designed to insure that the inventor participates in the upside if the product does well.

• The Paul Capital Healthcare team arranges an introductory meeting to better assess the inventor's financial objectives, as well as, short- and long-term needs.
• Follow-up consists of communication with the inventor to address due diligence questions that arise after initial review of the information.
• Once these questions have been addressed, within approximately one to two weeks the Paul Capital Healthcare team can develop one or more proposals for the inventor to review in approximately three weeks or less.
• After the inventor selects the approach that best meets his or her needs, a term sheet and Letter of Intent is negotiated.
• It will then take approximately four to six weeks for Paul Capital Healthcare to complete the due diligence process, negotiate documents and close the transaction.