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A biotech start-up was prepared to license out one of the preclinical projects. The drug had shown excellent efficacy in in-vitro and animal models of rheumatoid arthritis and preliminary data demonstrated a very favorable safety profile. However, as the project was in an early stage, our client was concerned that a licensee might not value the potential of the drug properly. Besides, there are various possibilities to structure a deal and the client wanted to know – and value – alternative deal terms in anticipation of later negotiations.
Bioscience Valuation valued the project as described in Approach:  project valuation and value-driven project management. Furthermore, several licensing agreements for rheumatoid arthritis – at different stages – were analyzed and modeled to determine how much value was gained by each party, the licensor and the licensee. Based on the project model and the analysis of comparables, Bioscience Valuation suggested several term sheets that would ensure a fair share of value for our client. This also included several options to shape a partnership, e.g., co-development and other forms of risk sharing.
Bioscience Valuation received an additional mandate to prepare the business case for the licensing project and to contact potential licensees. A number of meetings were lined up, both in Europe and in the USA. Bioscience Valuation presented parts of the business case and the valuation, and was also present during some negotiations. In the end, an agreement was reached with one of the potential licensees at terms that provided a fair share of value for our client.
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