Challenge:

A PE fund was looking at the potential purchase of a package of minority holdings in a portfolio of biotech companies on the secondary market. The fund approached Alacrita to conduct a due diligence of the core holdings across a range of technologies and therapeutic areas. The due diligence covered both technical and commercial factors.

Solution:

Given the diversity of the portfolio, Alacrita assembled a core DD team supplemented by specialists from its expert network to provide input on the different technologies and disease areas. The risks that we identified were diverse. For one asset, the fundamental issue was clinical risk due to technical challenges of achieving endpoints in neurological disease. At the other end of the spectrum, a company had an asset with a high level of approvability by regulatory agencies but which would face severe commercial pressures in a largely genericized marketplace. For various reasons, the transaction did not complete.

Due Diligence Services

Alacrita's due diligence experts have conducted over 200 major assignments for large pharma, biotech, universities and investors, underpinned by our ability to ensure each due diligence exercise is supported by individuals with the precise expertise required for a complete, thorough and accurate assessment.