Here's some interesting commentary and facts about some of the early biotech structured deals in 2013 between Pharma and the small pre-clin stage biotechs. The post is from Bruce Booth of Life Sci VC.
The upshot is that the deals look good so far. All appear to be high science plays (two orphans), share risk and capability between partners, are capital efficient, were driven by interest in the program and have low asset bases, and could all return outsized downstream returns (albeit low probability for full pay-outs).
The upfront return (IRR) on only one deal is particularly attractive. Questions now arise as to whether there will be more movement toward pre-clin type deals. If so, will this shorten or lengthen the time to liquidity for drug discovery companies once the big pharma bureacracy takes over?
Posted by Bruce Lehr Mar 1st 2013.