A private investment firm was interested in a European drug re-purposing company and asked Alacrita to perform top-level due diligence to help the firm decide whether it wanted to proceed to formal due diligence. 


Like many other pharma companies, the target company was using the FDA’s 505(b)(2) regulatory pathway to progress a clinical candidate in an ophthalmology indication to the market in just a few years. After review of the main development program covering preclinical and clinical data, clinical development plan, regulatory review, exit strategy, market opportunity and management team, and a discussion with the target company, Alacrita concluded that there was merit in pursuing a more in-depth due diligence exercise.

The key risks identified by Alacrita were ranked by severity and impact for the VC fund, and recommendations on the most important areas to focus any subsequent due diligence on were listed. This included a deeper assessment of competitor products and the product’s clinical development plan – in this case the latter would help determine whether the drug could be marketed as an OTC product.

Alacrita eventually went on to conduct full DD of the target company and provided a positive recommendation to the investor.

Due Diligence Consulting

Alacrita due diligence consultants have been a trusted DD source for close to fifteen years, conducting assignments for large pharma, biotech, universities and investors. Every due diligence we perform is underpinned by our ability to incorporate individuals into each project who have the exact matching expertise required for a complete, thorough and accurate assessment.

Related Case Studies