We advocate design and professionalism over relying on fortune.
Pharma, biotech and medical device companies are increasingly looking to acquire or in-license specialist products targeted at 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.
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.