Archive | May, 2015

An LSN Summer Chapter Series

28 May

By Scott Parks, Director of Marketing, LSN 

Scott 2Your fundraising efforts certainly won’t slow down this summer, nor will the team at Life Science Nation. We’re always on the clock, committed to providing early stage life science companies and investors with the critical data necessary to create compelling connections between technology and funding. In this spirit, LSN’s Next Phase will be publishing one chapter each week of our hit book from last summer, The Life Science Executive’s Fundraising Manifesto by Dennis Ford.Bookcover-Front

The Life Science Executive’s Fundraising Manifesto helps scientists understand the fundamental skills needed to brand and market their companies. It discusses how to use a consistent message to achieve compelling results from a fundraising campaign and how to aggregate a list of potential global investors that are a fit for your company’s products and services. The book also explains how to efficiently and effectively reach out to potential investor targets, start a dialogue that fosters a relationship, and ultimately secure capital allocations.

The LSN Summer Reading series begins with “The Legal Landscape: A Basic Overview.” Contributed by Gerard P O’Connor, Esq, this first chapter provides a whistle-stop tour of all the legal issues a fundraising CEO needs to consider when raising capital.

Click here to download/print the PDF.

O’Connor introduces the regulatory bodies a fundraising CEO will encounter, defines accredited investors, and presents some of the alternative options to pursuing venture capital funds. The chapter also informs entrepreneurs regarding key concepts in dealmaking, including dilution, terms, and working with brokers.

We hope you find this exploration of the legal considerations involved in fundraising to be informative. Join us next week for Chapter 2 — “Crowdfunding and IPOs.”

Enjoyed the preview? Buy now from Amazon.com or Barnes & Noble

Understanding a Pharmaceutical Company’s Internal Review Process

28 May

By Michael Quigley, Director of Research, LSN

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In order to provide our readers with a glimpse into the big pharma internal review process for collaborations and in-licensing, I recently sat down with an ex-sourcing executive from such a group. He stated that the process generally takes from 6 to 9 months from the initial contact, but can last longer as the company goes through a series of both internal meetings as well as meetings with the external innovators. The primary sources for innovation include both partnering and scientific conferences, (particularly for early stage technologies) as well as investors and bankers (particularly for later stage technologies that have already garnered some clinical data). It is generally members of both the scientific or technical review and business development teams who attend these events, speak directly with external partners, and are responsible for identifying these new opportunities.

Once an initial contact is made, if there is interest on the pharma company’s end, they will ask to review the pitch deck and executive summary, which should provide a clear description of the technology. This process of review is led by the business development team, and they manage the technical team that actually reviews the scientific merit of the innovation. Also during this time, there often is another scientific management team that is reviewing the strategic value that the innovation holds, given the pharma company’s current pipeline and strategy. Late stage assets generally get into this process sooner and involve a bigger team on behalf of the pharma company than preclinical opportunities, but that timeline can also be a function of the pharma’s interest in the technology.

If sufficient interest is garnered at this stage, the review will also include legal teams looking into the IP of the technology, regulatory teams evaluating clinical challenges and advantages, as well as a commercial viability team looking into commercial market factors. A solid pitch deck should provide information relevant to all of these teams who might be a part of this process. From here the pharma company will schedule a call (generally led by the business development team along with a technical scientist or others) to plug any holes that the pitch deck may have. If all goes well in this call, a face-to-face meeting will be arranged as a next step. These often take place at conferences where both parties are in attendance or mutually agreed-upon locations.

This face-to-face meeting will serve to answer any additional questions either party may have, as well as to give the big pharma company a stronger feel for the management team, especially in cases when a collaboration is being considered. At this point, at least several weeks from the initial contact, the pharma company may look to set up a data room and, if necessary, sign a CDA for the opportunity. By having a data room already set up with the relevant materials, you can help to expedite this process. Due to the number of opportunities that a pharma group may review in a given year, they often are not willing to sign a CDA until they have achieved this level of interest, to avoid excessive legal liability.

From here the internal review team will pull together a formal report on the opportunity to present to upper management, who will ultimately be making the final decision. The drafting and review of this report can be laborious, further lengthening the time required to finalize a deal. Often, in reviewing the strategic relevance of the opportunity, upper management will ask their internal review team to gather more information from the company, adding more weeks to the process. Once upper management has given the green light, lawyers from both sides will begin drafting the contract, a document that can be hundreds of pages in length and can take weeks or months to finalize.

If there is one key takeaway from this piece, it should be that the time this process requires is lengthy, so patience is necessary. This also speaks to the importance of entrepreneurs starting dialogues with potential investors early. As there is a very real possibility that, even toward the last phases of the process, the deal will fall through, it is an astute business practice to engage with multiple potential pharma partners simultaneously.

The more you can understand the internal process a pharma company maintains to review technologies, the better your chances of success. I hope this article was able to provide you with some new insights into that process, and I wish you the best of luck in your endeavor!

RESI @ TMCx Is Approaching – Check out the Program Guide

28 May

By Nono Hu, Senior Manager, Branding & Messaging, LSN

Nono 2LSN is pleased to announce its inaugural RESI @ TMCx Conference on June 8th, in Houston at the Texas Medical Center, the leader in collaborative medicine.

LSN is bringing more than 300 emerging life science entrepreneurs together with nearly 120 early stage investors from around the world for a full day of panels, workshops and partnering.

Through an expansive series of investor panels, RESI @ TMCx will present current topics covering investment mandates and procedures for identifying and qualifying candidates.  Additionally, RESI’s workshops will provide more in-depth advice on every aspect of the fundraising process.  The RESI Partnering Forum will allow fundraising executives to identify and book up to 16 meetings with life science investors who fit their company’s technology sector and stage of development.

Check out the RESI Program Guide to learn more! We hope to see you in 10 days at the largest medical complex.

RESI-Program-Guide

 

Hot Life Science Investor Mandate 1: Evergreen Venture Fund Seeking Therapeutic and Medical Device Opportunities throughout Europe and North America

28 May

An evergreen life science venture fund located in Europe was established in 2009 and wholly owned by a strategic foundation. The fund’s evergreen structure allows flexibility in the investment approach and the possibility, when appropriate, to take a long-term perspective in the investments. The fund has an annual investment capacity of approximately €50m. Investments are typically above €10-35m, and the firm prefers to take above 10% ownership. The fund is looking to invest primarily in Europe and in the USA/Canada.

The fund invests exclusively in life sciences, focusing on pharmaceuticals and medtech. For therapeutics, the firm typically prefers to invest at phase I/II but has also made investments at earlier phases of development. The fund will consider investing in medtech companies at the commercialization stage. The firm is open to opportunities in all therapeutic areas and indications.

The fund is oriented towards opportunities in the US and Europe and will take the role of lead investor in Europe. In US/Canada the firm prefers to syndicate with well-established VC investors specialized in life sciences. The fund expects to be actively in communication with management and represented on the supervisory board of portfolio companies.

If you are interested in more information about this investor and other investors tracked by LSN, please email mandates@lifesciencenation.com

Hot Life Science Investor Mandate 2: Private Equity Firm Looking for Commercial Stage Medical Devices, Laboratory Tools and Healthcare IT Opportunities

28 May

A private equity firm founded in 2001 and headquartered in San Francisco California recently closed its 3rd fund at $310 million. The firm makes growth equity investments ranging from approximately $15 to $40 million over the investment’s lifetime. The firm primarily invests within the United States but is open to consider international investment as well.

The firm is currently looking for commercial stage companies in areas of medical technology and devices, life science instruments and tools, healthcare IT, healthcare services, agriculture and animal health. The firm is agnostic in terms of therapeutic indication.

The firm only invests in companies with commercial revenue. The firm supports organic growth strategies, which allow for gross profit growth and investment in product pipelines and commercial expansion. The firm looks to take a seat on the company board and prefers to be the lead or sole institutional investor.

If you are interested in more information about this investor and other investors tracked by LSN, please email mandates@lifesciencenation.com

Hot Life Science Investor Mandate 3: Corporate VC Fund of Global Healthcare Company Seeking Innovative Therapeutics, Devices and Diagnostics in a Number of Indication Areas

28 May

The corporate venture fund of a multinational healthcare company has allocated CHF 500 million to invest in and develop commercially successful innovative life science companies. The fund is an evergreen fund and makes equity investment in early-stage biotech therapeutic and diagnostic companies. The fund prefers Series A. The typical initial investment size ranges from CHF 1-5M with capital reserved for follow-on financing. The fund invests in companies that are based in Europe, North America, and the Pacific Region. The fund is actively seeking new investment opportunities.

The Fund is looking to invest in companies with innovative new technologies, medicines or diagnostics, particularly in the areas of interest to the fund’s parent company. This includes: Oncology, Central Nervous System, Inflammation, Anti-Infectives, Virology, in-Vitro Diagnostics, Diabetes Care, and Molecular Diagnostics. For therapeutic biotech, the fund is willing to invest in companies that are still 18-24 months away from the clinic. The fund highly prefers companies with both a discovery engine and a product pipeline.

The Fund invests in private and public companies. The fund only invests in public companies as part of a collaboration entered into by the parent company’s pharma or diagnostics division. The fund requests board seats and typically prefers to be in an ownership range of 15% or more. In general, the fund prefers to co-invest with leading venture funds as well as other corporate venture funds.

If you are interested in more information about this investor and other investors tracked by LSN, please email mandates@lifesciencenation.com

Hot Life Science Investor Mandate 4: Multinational VC Fund Looking Opportunistically in the Life Science Space for Potential investments

28 May

A venture capital firm with offices throughout Europe, The US and the Middle East has approximately €540M AUM and is currently managing five active funds. The firm’s fifth fund had its first close at €92M in October 2014, with the aim to raise €150-200M. The firm makes equity investment in life sciences and biomedical technology companies at all stages of development. However, the firm prefers late stage preclinical or early stage clinical for therapeutics and diagnostics and medical devices that are close to market approval. The typical investment per round is €3M to €7M. The firm looks for companies that are based in the US, Canada, Israel, and Europe. The firm is actively screening new investment opportunities.

The firm is generally opportunistic in the life sciences space. The firm targets therapeutics and diagnostics, medical devices, and biopharmaceuticals. In therapeutics, the firm focuses on drug development and is open to all indications including orphan indications. In medical devices, the firm has a special focus on interventional devices in cardiology, gastroenterology and pulmonology that are close to or on the market approval. However, the firm is equally opportunistic in other subsectors and indications for medical devices, but all with a therapeutic focus.

The firm invests in companies at all stages of their development. For drug development, the firm invests from late preclinical to mid-stage clinical development. The firm sometimes considers companies with products on the market. The firm seeks a company with a strong and experienced management team or technical experts in the relevant technology.

If you are interested in more information about this investor and other investors tracked by LSN, please email mandates@lifesciencenation.com