Licensor:

US Mid-cap pharmaceutical company

Licensee:

Asian large cap pharmaceutical company (ranked #9 by net sales, #6 by operating income, #1 by operating income/total sales)

Product:

Small molecule clinical phase III-ready in Western markets

Therap. Area:

Oncology/Hematology

Situation:

Program has been acquired in the context of an M&A. Licensor wishes to accomplish non-dilutive project financing for the imminent Phase III studies.

Objectives:

Find the right partner for Japan only rights (single country, single compound) who makes the necessary investment into Japanese clinical studies in a timely manner and who needs to enhance its hematology/oncology pipeline with a late stage program.

Activities:

After the suitable partner had been identified in a shortlist of 20, a one week trip to Japan with visits of 16 companies triggered a confidential in-depth evaluation by all visited companies, of which 13 submitted term sheets. An extensive electronic data room was created, updated and offered for in depth program evaluation , a straight forward bidding and complex negotiation process was driven, 6 on-site Due Diligence visits hosted and in a three months’ timeframe a signed licensing agreement accomplished.

Results:

• Licensing, development and commercialization agreement signed. The new partner accepted appropriate performance clauses.
• Upfront and the first milestone payment yielded a high double digit million $ payment in the first year of the contract, thus significantly contributing to the licensor’s cash flow and balance sheet.
• The licensee is currently advancing the compound to plan in his territory. The clinical development proceeds with great success, and generates the expected clinical data.
• Licensee and licensor established and maintained a very fruitful and constructive working relationship.
• The licensor company got acquired by a big biotech company despite the fact that this meanwhile launched product was encumbered with those 3rd party royalties and obligations.