Four Essential Steps for Effectively Presenting Your Company or Asset to Potential In-Licensors15 November, 2016
Given the rapid pace of innovation in today’s Life Sciences industry, it has become more important than ever for biotech companies to align themselves with strategic partners in order to advance their most promising drug candidates toward market readiness.
GAUTAM AGGARWAL, Partner
Triangle Insights Group, LLC
KNOWS HOW TO OPTIMIZE THE COMMERCIALIZATION OF BIOPHARMA ASSETS
Successful BioPharma partnerships don’t happen by chance, and negotiating an out-licensing deal can be complex— especially when the company is also focusing on progressing the clinical portfolio.
While the partnering or licensing process is often daunting, it can be simplified by focusing on four key steps that we, at Triangle Insights Group, believe are critical to preparing for partnering and a successful transaction.
Gautam’s Four Essential Steps for Successful BioPharma Partnering and Licensing
#1 PREPARE EARLY
Preparing early means identifying potential partners well in advance of the partnering process. This can be done by attending major industry conferences, utilizing partnering booths, initiating discussions with potential partners and maintaining a relationship with them as advances are made or situations change over time.
#2 DETERMINE VALUE
Determining the value of your asset and understanding how a potential partner might perceive value is critical to the partnering process. This means having an appropriate level of understanding about the commercial value and market dynamics and being able to clearly relate that narrative to potential partners. It also means having the flexibility to adapt that narrative to the specific needs of different potential partners. A good place to start is by looking at current market size and how that market size is anticipated to evolve over the next ten or twenty years.
#3 ALIGN EXPECTATIONS
Aligning expectations is an internal process that balances board and other stakeholder expectations versus potential partner expectations. Ask your team what they would consider a good deal and what they would consider a bad one. For instance...
- What are the key components or “must haves” for the deal?
- What are those components that would be nice to have, but are not essential to getting the deal done?
When deal expectations are aligned internally, there’s a greater chance of achieving what you want.
#4 ORGANIZE AND SHARE INFORMATION SECURELY AT THE RIGHT STAGE
A virtual data room is essential for successful biopharma partnering. It’s what buyers or licensors expect, and it’s the best way to ensure your IP remains secure throughout the deal process. Virtual data rooms are also ideal when staging information prior to a deal. During the early stages of due diligence, you may only want the potential partner to have access to a limited number of files. As diligence progresses, and the seriousness of the partner is demonstrated, more access can be granted. It’s also possible that different groups within the same company might be granted different levels of access to the data room.
A typical data room structure might include folders such as:
- Corporate Overview
- Investment Overview
- Commercial Strategy
- Pre-Clinical Program
- Clinical Program
- Intellectual Property
- Manufacturing Processes
BioPharma partnering and out-licensing can be daunting, but it doesn’t have to be prohibitively so. The key to successful biopharma partnering is being prepared well in advance of negotiations, determining the appropriate value of the asset, being internally aligned on both deal value and deal structure, and then presenting due diligence materials in a well-organized data room for partner review.
If you would like a deeper dive into optimizing the value of your biopharma asset, download Guatam's white paper:
ABOUT GAUTAM AGGARWAL, Partner, Triangle Insights Group, LLC
With thirteen years of pharmaceutical and consulting experience, Gautam focuses on providing strategic guidance to clients within life sciences organizations. He has provided strategic advice to a wide range of clients, spanning Top-5 pharmaceutical manufacturers, emerging biotechnology manufacturers, bio-pharmaceutical investors, and service providers to biopharmaceutical companies. Gautam’s previous employers have included GlaxoSmithKline, Boston Consulting Group and Campbell Alliance.
Gautam received his MBA from the Fuqua School of Business at Duke and holds an MS and a BS in Bio-Statistics from UNC-Chapel Hill.
Stay tuned for our next Vault Series featuring another great BioPharma star with insights to make you a better deal maker.