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Contingencies for Biopharma, Medtech Deal Planning in a Down Market
Airdate: October 13, 2023
For biopharma and medtech companies developing new treatments, capital for advancement and growth is invariably dependent on strategic preparation, differentiation, and persistence. Good preparation can mean funding or famine in a retracted market—and ultimately can impact the trajectory of a company and whether treatment reaches people in the clinical setting.
In a down market, there are creative and thoughtful approaches companies can take to stand out as capital becomes more closely guarded and the competition becomes fierce.
In this episode of Back Bay’s industry podcast, the Life Science Report, Jonathan Gertler speaks with Goodwin Procter life science partner Kristopher Brown about the current market landscape and how life science companies can recalibrate and prepare for capital raises—no matter the market outlook.
This episode focuses on discussion of deal management in the current market, including:
The current deal scape—difficult times ahead or par for the course in the life science sector?
Approaches to deal preparation in a challenging environment
Tentative M&A, licensing, partnering activity and public markets necessitate preparation and strategic focus ahead of capital raise, particularly: Thorough knowledge of asset differentiation - positioning, competitive intensity, pricing, milestone development/definition and valuation, among other activities
Creative deal financing models – royalty monetization, tranced investments, debt financing, preferred stock, liquidation preferences
Structure and valuation discipline
Portfolio and selection management toward a deal
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