Niche markets,
funding of biotechs, technological convergence, “biosurgery” and
tissue engineering
Pharma, biotech and medical
device companies are increasingly looking
to acquire or in-license specialist products
targeted at small, clearly defined patient
populations.
The reason is twofold: the high and often
unacceptable risks associated with pursuing
the next "blockbuster" technology,
coupled with the demonstrated profitability
of focussing on a limited number of customers
with a reduced sales force. In addition,
combination bio-technologies are being developed
which increasingly cross classical regulatory
boundaries and throw up complex development,
approval, marketing and reimbursement issues.
This convergence of technologies means that many of the most interesting
opportunities may combine active molecules, device technologies, biomaterials
and human or animal cells or tissues. Too often investment and licensing
deals in these areas, and in more typical biotechnology start-ups, are
agreed without either a comprehensive evaluation of all sources of risk
or a detailed assessment of potential benefits.
Frequently, the acquirer/licensor
does not have the relevant expertise in-house, or external consultants
who lack the necessary cross-sector understanding to conduct a comprehensive
due diligence are used in an informal manner for this absolutely critical
step in the investment process. This often leads to misunderstandings and
sometimes to deals subsequently collapsing.
In some cases the product or
technology may prosper more through fortune than design. Possibly
a worse scenario resulting from inadequate due diligence is the rejection
of good investment opportunities or acquisition targets, and the resulting
loss of revenue.
At Kinesys we prefer design and professionalism to relying
on fortune.
Kinesys, with its top class and complementary
team of experts, professionalizes and de-risks
due diligence and strategic assessment of acquisitions
and investments in the specialist biopharmaceutical
industry.
Our focus is the wider Biotech area including
orphan disease companies, medtech and diagnostics,
and we have particular expertise in novel,
breakthrough and combination technologies.
Our core team and advisory board have hands
on experience of the most complex strategic
and technical challenges, through all stages
of development up to and including successful
commercialization.
The principals have all either successfully
set up and run companies, held senior staff
or operational posts in Biotech, Medtech
and Pharma companies, or held senior academic
posts.
We understand intimately the issues facing
venture capital companies evaluating potential
investments in complex technological areas.
We can assist
at all rounds of investment and we can advise on most product
licensing deals, from biopharmaceuticals to devices
and diagnostics.
