Alacrita provides support to organizations seeking pharmaceutical licensing opportunities, both in- and out-licensing, as well as negotiation support. Our approach is flexible and can be tailored precisely to your needs, including dovetailing with existing internal capabilities, or our team taking on full responsibility for out-licensing activities. Click here for more information on our expertise in this area or to view additional pharmaceutical licensing case studies beyond the below.
I. Providing input to a publicly traded biotech for a term sheet negotiation
Challenge: A publicly-traded mid-cap biotech was negotiating a term sheet with a potential licensor and asked Alacrita for input into critical financial terms. The asset was a cell therapy, a technology in which the client had no commercial experience, and the client urgently needed information into CMC costs and timelines for the product.
Solution: Alacrita developed a long list of parameters and assumptions that feed into the pricing a CDMO will provide for technology transfer, process development, engineering runs and GMP batches of a cell therapy. This covered six specific domains broken down into over 40 individual sub-items. Very few of these were known by the client, so Alacrita developed a high level time and cost model to estimate the likely ranges the client would be facing. The client used this input during negotiations but unfortunately the deal did not proceed as the client considered the terms too rich.
II. Negotiation support for a privately-held company developing a universal cancer vaccine
Challenge: A privately-held company developing a universal cancer vaccine was facing negotiations with a party possessing a unique co-factor which was an essential component of the final formulation. Alacrita's client sought strategic advice regarding the optimal time to engage with the counter-party as well as on the construction and terms of the prospective deal.
Solution: One of Alacrita's business development consultants who had negotiated similar deals in the past recommended an immediate start to discussions on the grounds that there is value in early certainty over terms and also that delaying discussions until data matures would drive up the value of the deal. Alacrita's consultant became a member of the clients negotiation team and played a hands-on role in discussions with the licensor, reviewing term sheets and proposing counter-offers.
III. Negotiation support for legal access to specific background IP
Challenge: A client urgently needed legal access to specific background IP that was in the possession of a company with a shared heritage. The urgency stemmed from an impending financing transaction, and it was essential that the client had clearly established rights in order to be in condition to withstand due diligence.
Solution: One of Alacrita's European business development consultants joined the client's negotiating team for a fixed period whilst the construct and terms of the deal were being hammered out. The deal proceeded to a satisfactory conclusion.
IV. Analysis of deal scenarios for an ophthalmic drug
Challenge: A clinical stage company developing a drug to treat ophthalmic diseases was considering partnering its lead asset. With three deal scenarios under consideration, the company asked Alacrita to conduct an analysis of comparable deals.
Solution: Alacrita conducted a comprehensive search of deals using a range of databases. In the absence of direct indication-specific comparables, licensing deals based on indication size were explored. Our deliverable was a report summarizing example licensing deals set in the context of the company’s preferred deal scenarios and our suggestions with regards to the optimal deal scenario.