In the current climate it is unsurprising that biopharmaceutical companies are tapping alternative sources of financing, including royalty monetisation for commercial products. Dr Ken Macleod, John Leone and Dr Walter Flamenbaum explain how investors weigh up risk when valuing such transactions.

Genzyme Corp is merging two of its subsidiaries, Genzyme Tissue Repair and Genzyme Surgical with a third company, Biomatrix Inc. in a bold bet on the promise of biosurgery--the combination of biomaterials and gene and cellular therapies with more traditional surgical instruments. Clinically, biosurgery will hopefully improve patient outcomes; commercially, it will differentiate surgical instrument makers whose products seem increasingly alike.