Structuring and Managing Strategic Alliances PDF

112 Pages·2013·3.04 MB·English

by  New Owner

Clare Ozawa, Chief Bus ines s Officer
Inception Sciences

Rekha Hemrajani, VP, Head of Licens ing and
M&A, Onyx Pharmaceuticals
Topics for Today
• Why Partner
• How To Structure a Partnership
• How To Value a Partnership
• The Deal Environment & Current Metrics
• The Deal Process
• Is the Business Model Broken? Considerations for
a Business Development Professional
• Recent Examples

2
Why Partner
3
Why Partner
• Cash
• Development & Commercial Skills
• External Validation
• Risk Sharing or Increasing Shots on Goal

“Pharma” “Biotech”
• Technical Skills
• Product Candidates
• Speed
• Innovation
But this view ignores some complexities…
4
“How We Used To Do It”
Financing Your Biotech Company - 2001
$600
 Private Public  $300
$500
$400

s
n
o
i
l$300
l
i
M $150

$
$200
$30
$100
$50
$1 $10
$0
NIH / VC - early VC - late / "VPalhidaartminag " IPO Public
Academic stage mezzanine PPaarrttnneerrsshhipip Secondaries
Grants
5
But Things Have Gotten More Complex…
6
It Is Taking Longer And More Capital For
Companies to Exit
Average Equity Raised by Life Sciences
Average Time to Exit of US Venture-
Companies
Backed Life Sciences Companies by
to Acquisition by Year of Exit ($ Millions)
Year of Exit (Years)
Source: NVCA and Thomson Reuters
7
Healthcare IPOs Have Dwindled Over Time
Percentage of Total IPOs per Year, 2004-2012
Source: Renaissance Capital; BIO website
8
Although Recent Data Suggests Some
Reawakening of the Biotech IPO Market…
--NASDAQ Biotech Index
--NASDAQ
--S&P 500
• 2 Preclinical IPOs in 2012: Regulus (RGLS) and Verastem (VSTM)
Source: Yahoo Finance
9
Biotechnology VC Total Funding and # of Deals
By Year 1995 – 2012
And VC Funding is Down almost 30%
10
Source: PWC Money Tree