Challenge:
Following a pre-due diligence exercise, an investment firm asked Alacrita to conduct a deeper due diligence on a biotech company's vaccine platform technology targeted towards infectious diseases, with potential programs in Herpes Simplex Virus and other diseases.
Solution:
Alacrita focused on specific risks identified in the pre-DD, as well as standard risks in any drug development program (regulatory, manufacturing, clinical, etc). The process involved:
- Detailed review of the secure data room contents and materials otherwise transmitted by the target company
- Determining the level of risk associated with the issues already identified and also identifying other areas of concern
- Further discussions with the target company to seek clarification and amplification around key issues
- Proposed approaches to mitigate the risks
We compiled our findings and recommendations into a report describing the nature and level of each key risk and their impact on the magnitude and timing of possible investment returns. We concluded that the platform had exceptional potential, the programs were well-targeted, the risks were manageable and the management team was of a very high calibre. The Series B investment proceeded and was oversubscribed.
Due Diligence Consulting
Alacrita has been a dependable due diligence partner for over a decade, bringing both the experience & expertise necessary to help you minimize risk and make an informed decision.
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