- identification of in and out-licensing opportunities
- valuation and due diligence of licensing opportunities
- development of optimal partnership model (e.g., licensing, collaboration, co-development, co-marketing, equity transfer)
- preparation of value-maximizing term sheet
- participation in negotiations
- coaching of management during the licensing or partnering process
It is essential for a pharmaceutical company to build a well-balanced portfolio that provides the highest return and maximum productivity for any given budget. For biotechnology it is often necessary to out-license drugs in order to profit from upfront and milestone payments or to partner with a larger firm to capture revenues from its technology. A first step is the identification of in or out-licensing opportunities. Bioscience Valuation has a large network of contacts and access to major databases to facilitate the identification of opportunities.
The valuation of a project is then performed as described in  project valuation and value-driven project management. The valuation is always combined with a thorough due diligence to ensure the validity of values that are entered into the financial model. Once the project value has been assessed, the optimal form of partnership will be determined.
In some cases this may be a strict in or out-licensing deal, in other situations the agreement may involve risk-sharing, co-development, co-marketing or equity transfers. The term sheet describes the financial details of the planned deal. Firms do not always understand the financial consequences of modifying certain aspects of the terms. Bioscience Valuation has extensive experience in modeling deal terms to ensure that clients gain a fair share of value.
An important aspect in preparing a licensing deal is to understand how much value a new drug generates for each partner. To this end we set up valuation models for both partners that help us understand how both sides can benefit from a partnership. This is an important piece of information that is highly valuable in later negotiations. Besides, our analyses are always combined with an in-depth investigation of comparable licensing agreements.
Once the value of the project has been assessed and a term sheet has been prepared, both partners can turn to the financial aspects of the negotiation. Often Bioscience Valuation presents the evaluations to potential partners. We are also prepared to model alternative terms to incorporate suggestions from the partner, and to determine the values these terms would create for both parties. Finally, we support the negotiations until an agreement has been signed and often continue to help our clients beyond that date.
|
