Challenge:

A UK-based VC wished to invest in a biotech spin-out focussed on the development of R&D tools using induced pluripotent stem cells (iPSCs) as organoids to mimic human tissues. These ready-to-use assays were primarily developed for use in drug toxicity testing, including retinal, renal and skin cell assays. Before committing to an investment,  Alacrita was asked to perform a due diligence assessment of the technology and company.

Solution:

Using three specialist consultants, Alacrita reviewed the technical data and patents for each of the products, in addition to the projected development, timelines and financials. This, coupled with a face-to-face discussion with the company’s management team, allowed us to form a due diligence report covering the following key areas:

• Unique selling points
• Sustainability
• Intellectual property
• Market size
• Commercialisation strategy

Our analysis highlighted several key risks for the investors and company management to consider, and the investment proceeded led by our client.