Challenge:
Our client was advising principal investors on a possible transaction to cover the development and commercialization of a product targeting chemotherapy-induced anemia (CIA). Alacrita was commissioned to provide specialist strategic advice, focusing on the commercial and scientific viability of the product in this indication and the likely capital requirements required to bring it to market. A memorandum of understanding had already been drafted, therefore we were also asked to use our transactional expertise to reality check the terms.
Solution:
Our scientific consultants assessed available information and formed an opinion on the strength of current preclinical and clinical data, and the remaining R&D needed to prove therapeutic effectiveness and to gain regulatory approval. Our transactional expert used this information to quantify and assess the risk in the program against the current license agreement terms. Ultimately, the project was deemed to be very high-risk based on existing data and significant amendments were needed to the agreement to ensure an appropriate balance of risk and commercial reward between licensor and licensee.
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