When a start-up pharma company needed to increase their capital, an Instigator expert was there to help guide them through process of divesting an asset.
The Opportunity
An Instigator expert led a team charged with developing and executing a plan to monetize a drug delivery technology, which would generate cash flow for a start-up specialty pharma company. A successful proof of concept study had been completed earlier using the technology with an existing product active ingredient.
The Solution
To help meet this challenge, the team’s first step was to determine valuation. First, we developed a market forecast for potential products that could utilize this technology. Then we evaluated other completed product technology deals to give our valuation a context.
The team also created an in-depth presentation that outlined the technology’s advantages and applications.
A SharePoint data room was created, which included all information relevant to the technology’s market relevance: IP, CMC, Manufacturing, Regulatory, Marketing, Market Data, Legal, Clinical Data, and more.
Finally, we developed a list of potential companies that may be interested in the technology, based on its relevance to their current product portfolio. The team then touched these targeted companies through a variety of platforms: telephone, email, conferences(AAPS, DCAT, etc), and more.
The Result
By the conclusion of the initiative, the team had dialogued with twenty potential companies. Of these twenty, our expert presented, and provided data room access, to six of them. In the end, two companies made offers.
We successfully negotiated a deal structure with terms that both parties found very agreeable: upfront payment; milestones based on successful completion of an FDA-directed clinical study; acceptance of filing by the FDA; approval of product by the FDA; and single-digit royalties on net sales.
