Target Assessment and intellectual property

For a mid-cap pharmaceutical company seeking to establish a biologics pipeline through partnership with a mAb development boutique, Alacrita assessed the quality of a range of target opportunities, the soundness of third party contracts and the underlying IP position and risks. We developed an opinion as to how likely it was that application of a suite of novel antibody discovery tools would lead to new patentable drugs against known and novel targets.

Alacrita reviewed the commercial aspects of third party contracts against minimum acceptable terms that would protect the interests of the client.

In addition, a number of potential drug development programmes were assessed, identifying the key target, clinical and market risks. Alacrita modelled certain scenarios (e.g. marketed vs. development stage bio-better) to allow the client to understand the overall value of this partnership.

Strategic Valuation

For a division of a multinational pharmaceutical company, Alacrita evaluated a pipeline agreement with an antibody platform technology company. The overriding question was “What is the overall ‘value’ of this partnership?”. Alacrita assessed the commercial potential of the opportunity, and provided a critical analysis of the rNPV model in use by the negotiation team. Alacrita thoroughly probed and tested the underlying assumptions using real world data incorporated into a Monte Carlo simulation model.

The approach provided greater insight into the impact of the underlying uncertainties, allowing the key outputs (e.g. NPV) to be expressed as a range, with confidence intervals, rather than as a single number. It also enabled material sensitivities to be identified.

In addition, Alacrita reviewed a relevant selection of early-stage biotechnology deals to generate a ‘comparables’ analysis. This allowed the proposed transaction to be benchmarked against analogous transactions, also serving as a useful cross-check of the rNPV analysis.

Alacrita helped the in-house team build the case for the deal at board level, emphasising the value of the strategic logic of the deal and setting out the non-financial drivers of the opportunity.

Biosimilars

For a European pharma company seeking to license a development stage follow-on biologic, Alacrita assessed the commercial potential of a second generation antibody against a validated oncology target.

Alacrita assessed the competitive landscape of the target molecule, considering both biosimilars and other next generation products in development. Through interviews with clinicians, Alacrita established the key unmet medical needs to assess the market opportunity, quantified the size of that opportunity and identified the clinical and commercial risks.

Using this information, Alacrita constructed a Monte Carlo simulation and risk-adjusted NPV model and advised on key terms to counter-propose to the technology originator.

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