Partnering, Licensing and Financing

“Whenever you find that you are on the side of the majority, it is time to reform” Mark Twain

Case Histories

$10 million series B financing; Head of Corporate Development (Interim)

We were retained by a UK biotech to identify and assess opportunities for corporate development and financing opportunities. Working closely with the CEO and investors, we opened discussions with over 50 parties (US and European biotechs and big pharma) and assessed multiple opportunities for partnering, M&A and financing. The role included developing strategic and scenario analyses, financial modelling, and active participation in raising a series B private investment round of over $10 million.

$42 million licensing transaction, gastrointestinal disease space

We performed an independent commercial and scientific review of a listed UK biotech company for a major Japanese pharma. Subsequently, the Japanese Pharma in-licensed a phase II product from the UK biotech with a headline deal value up to $42 million. The deal structure involved a $2million upfront payment, and a further $3million upon exercising rights to a licence and development agreement. A further $37 million is payable in stages on achievement of milestones. ATPBio was critical in providing an independent appraisal of the UK biotech’s valuation, opportunities and risks.

$9.9million series B financing, anti-infective space

We worked on series B financing for a privately held biotech company developing novel anti-bacterial compounds. We originated the client, introduced an FSA regulated life sciences corporate finance house, and worked closely with corporate finance house on the project. ATPBio was the lead author on the investment memorandum, and formed part of the team that approached over 70 life science specialist VCs throughout UK and Europe. We also performed research on the market and competitor analysis, and explored international M&A opportunities in parallel to the financing. The company raised $9.9 million, and the financing was completed in May 2005.

£2 million financing, strategic support, device/ diagnostics company

We performed a market analysis and 5 year revenue forecasts for a UK company developing optical technology for diagnostics and for use in the security industry. The project included working closely with the executive management team, reviewing competitive offerings, producing 5 year forecasts, and refining the company’s corporate strategy. Research findings were presented to the board and led to a refinement of the client’s core focus. Recommendations were adopted fully, and led to successful investment round of over £2 million.

£2 million in-licensing, specialty pharma, CNS space

We worked with the co-founders of a UK/ EU based specialty pharma company to in-license two assets in the CNS space. These are late pre-clinical stage programmes for major disease indications. The agreement included £2 million in development stage milestones, and additional commercialisation milestones. Subsequently involved as an investor, adviser and supporting business and corporate development activites.

€2.5 million financing, strategic support, inflammatory diseases space

The client, a European VC, retained us to perform an independent strategic review of a portfolio company in the inflammatory diseases space. The project involved prioritising investment options based on potential returns from clinical stage programs, building an investment case to drive key programs to value inflection, and developing a strategy to position the company for exit in around 3 years. Strategic review and ongoing support led to successfully raising $2.5 million. Follow on valuation assessment performed 2 years later following successful phase IIa trial results.

Spin-out from an US listed biotech

We were engaged by a private buy-out partnership to assess the opportunity for spin-out of IP assets from a US based listed biotech. This involved assessing the commercial opportunity for several large molecule therapeutic candidates. Ten projects were assessed across the therapeutic spaces of musculoskeletal and wound healing; infectious diseases; cardiovascular and metabolic disease; oncology; and anti-inflammatory diseases. We built an investment case based on commercial opportunity, therapeutic area, and how to package assets for subsequent company spin-out and financing. Members of the ATPBio team have played key roles in licensing the assets in order to establish and finance a new spin-out biotech company.

Licensing term sheet review from big pharma partner for US biotech

We were engaged by an US biotech to review and recommend counter-proposal for a term sheet received from a potential big pharma partner. This involved an extensive review of recent deals done in the space, and different types of licensing deal structures including licensing and option deals. The counter proposal was well-received by the board and instrumental in further discussions.