This article is based on Chapter 4 from PharmaVentures' recently published A Guide to Royalty Rates in Pharmaceutical Licensing Deals, which, as well as being completely updated, benefits from the inclusion of valuable data from a recent survey on licensing and the associated royalty rates undertaken with industry professionals. Information is also included from interviews with seasoned licensing executives who, together, have negotiated over 120 deals, and the report provides access to a subset of deals containing a royalty component from PharmaDeals#174; Agreements. Chapter 4 describes some of the key factors affecting royalty rates in pharmaceutical alliances, and, from this chapter, this feature focuses on overall considerations, and the effects on royalty rates of market potential, product development stage, competition and indication, and combination products.