Challenge:
Our client was a publicly-traded precision oncology company with whom Alacrita had previously supported with a long-term asset scouting engagement. This cash-rich biotech company wanted to explore the possibility of expanding its pipeline through acquisition of one or more financially distressed biotech companies with complimentary drug programs. Alacrita was asked to conduct an analysis to identify any such opportunities. At the time of this work, the market for private financing of biotech companies had become quite restricted, causing a high number of firms to be operating with short runways or to run out of cash.
Solution:
Alacrita built an extensive database of companies active in the development of new oncology drugs with complimentary mechanisms of action to those of our client. The criteria for portfolio fit were determined in conjunction with our client beforehand. We then profiled the financial fitness of each firm to draw up a target list of opportunities for further consideration. Each qualifing company and its oncology assets were then considered in more detail to judge whether formal due diligence should be initiated. After consideration of several hundred companies, our client decided not to proceed with prosecution of an acquisition at that time, but was comfortable that the search had been exhaustive.
Alacrita's Asset Scouting & In-Licensing Services
Alacrita supports both large pharma and biotech companies with their search and evaluation activities. Our scouting support is often structured to integrate with the client’s internal efforts, resulting in a constant flow of new opportunities.
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