John P. Gourary

John Gourary heads Covington’s royalty monetization practice and has over 30 years of experience in credit market transactions (including syndicated loan facilities, structured finance, and innovative financings of unusual asset classes).  He has handled transactions in these areas for, among others, Abbey National, Abbott Laboratories, Canada Pension Plan Investment Board, Charlesbank Capital Partners, Duke University, Emory University, GE Capital, Kerr-McGee, King Pharmaceuticals, LIN Media, Microsoft, Northwestern University, OrbiMed, Pfizer, SandRidge Energy, The Kennedy Trust for Rheumatology Research, UBS, University of Colorado, University of Pennsylvania, University of Rochester, and Zurich Financial Services.

Mr. Gourary is widely recognized as a leading expert in the highly specialized field of pharmaceutical royalty monetizations.  He has been involved in the royalty monetization market from its early stages and has advised on royalty monetization transactions with an aggregate value in excess of $4 billion.  Mr. Gourary advises all the principal participants in these transactions, including major universities, financial investors, individual inventors and life sciences companies.

Mr. Gourary is a frequent speaker on the topic of pharmaceutical royalty monetizations, and has given presentations at conferences held by the Licensing Executives Society (LES), Association of University Technology Managers (AUTM) and Technology Transfer Tactics.

Representative Matters

Representative royalty monetization engagements include:

• Northwestern University, and an inventor affiliated with Northwestern University, in a series of royalty monetizations (structured both as sales and as financings through special purpose vehicles), including Northwestern’s 2007 sale of a portion of its worldwide royalty interest in Lyrica for $700 million, the largest monetization of a royalty stream for a pharmaceutical product.
• University of Pennsylvania in the structured sale of a portion of its worldwide royalty interests in Juxtapid.
• The Kennedy Trust for Rheumatology Research (a UK charitable trust which currently funds a major research institute at Oxford University) in the structured sale of a portion of its worldwide royalty interests in Remicade and Simponi, the first royalty monetization by a non-profit institution outside the United States.
• Duke University in the sale of a portion of its worldwide royalty interests in Myozyme and Lumizyme.
• University of Colorado in the structured sale of a portion of its worldwide royalty interests relating to certain uses of Botox.
• Emory University in its ground-breaking monetization of the royalty rights associated with Emtriva for $540 million, the first royalty monetization conducted by auction and Investment Dealers' Digest ‘s 2005 Healthcare Deal of the Year.
• Centre Solutions, a member of the Zurich Financial Services Group, in the development and structuring of the first pharmaceutical royalty securitization, a $130 million senior/subordinated financing, on behalf of a major university, of the rights associated with the intellectual property at the core of a leading pharmaceutical product.

• A $5.5 billion multi-tranche senior secured credit facility for Kerr-McGee and a subsequent $1.25 billion revolving credit facility, each led by JPMorgan.
• A $22.5 billion multi-currency credit facility for GE Capital, led by JPMorgan.
• Repurchase agreements for Microsoft to finance its $30 billion dividend payment and its $20 billion stock self-tender.
• A $580 million senior secured credit facility for LIN Media, led by JPMorgan.
• A $1.75 billion senior secured (borrowing base) credit facility for SandRidge Energy, led by Bank of America.
• Charlesbank Capital Partners in acquisition and other financings ($50 million to $250 million) for the following portfolio companies: Aurora Organic Dairy, Blacksmith Brands, Cedar Creek, Horn Holdings, and Zenith Products.

Honors and Rankings

• New York Super Lawyers (2006-2013)

Publications and Speeches

• Mr. Gourary participated in a Q&A session with Law 360 (11/25/2009) regarding his Corporate Finance practice.
• Mr. Gourary is quoted in "Royalty Monetization: High-Profile Deals Generate Excitement Among TTOs," Technology Transfer Tactics (November 2008), (Reprinted with permission from Technology Transfer Tactics, Vol. 2, No. 11 (November 2008)).
• Mr. Gourary is quoted in "Northwestern Sells to Royalty Pharma Portion of Lyrica Interest for $700 Million," BNA's Life Sciences Law & Industry Report (January 2008) (Reproduced with permission from Life Sciences Law & Industry Report, Vol. 2, No. 1 (Jan.4, 2008)) which discusses Northwestern University's sale of a portion of its worldwide royalty interest in Lyrica.