Transaction Advisory Services for Healthcare Service Companies

Securing adequate funding for drug discovery and development programs continues to be challenging for the biotech industry. Historically, such funding has been raised through dilutive equity in often unpredictable public capital markets and/or by out-licensing key programs to big pharma, leaving biotech shareholders with only a fraction of the full value of their companies’ innovations. Both of these capital sources have serious drawbacks, and biotech companies are seeking alternative financing sources that mitigate the value leakage inherent in issuing undervalued stock or licensing away their pipelines’ most promising assets to big pharma at values that do not capture the significant upside potential for their shareholders.

In response to these trends, a range of alternative financing sources have become available, including royalty monetizations, committed equity financing facilities (CEFFs), contract research organization (CRO)-linked financings and collaborative development financings, all of which have increased the capital channeled into the industry in recent years.