Sell-Side Advisory and Deal Benchmarking

An early-stage biotech was pursuing a parallel path of raising Series A funding from financial investors and seeking strategic partners to whom it could license the rights to its phase 1 program. The client needed to more effectively articulate the value proposition for its platform and asset. It also needed to understand the current deal environment, as well as the potential valuation for the phase 1 program and the overall business.

Our team began by understanding the platform, data, and commercial opportunity for the phase 1 asset, and the other potential indications the company was planning on pursuing with its platform. We reviewed the company’s investor/partner presentation and revised it to better articulate the platform’s value proposition, including its near- and long-term potential. We also performed an indication prioritization analysis and provided advice on the additional indications the company should pursue to maximize value for the business. In addition, we performed a robust benchmarking of capital raises, the IPO market, and out-licensing deals to provide perspectives on potential valuation for the company based on private and public capital raises and valuations, and deal structures for out-licensing the asset including upfronts, milestones, and royalty potential.

The client had a more articulate investor/partner presentation that clearly communicated the value proposition of its platform, a better plan for future development, and a more realistic view of the company’s pre-and post-money valuation. They also had a better understanding of the deal structures and valuations they could expect from a capital raise or from licensing the rights to the phase 1 asset, which helped them in discussions with both financial and strategic partners.