Corporate Transactions >> Case Study

Challenge:

A US Biotech company has received an unprompted offer to be acquired. Management and shareholders respond that the offer does not fully value the commercial potential of their recently launched Brand nor the strength of the R&D pipeline

Process:

A joint team is charged with developing a new Business Case to be presented to alternative acquirers. The team reviewed contribution of the R&D pipeline to the company valuation , current performance of the commercial assets, potential revenue growth through life cycle management and sales force expansion. A new pitch, including presentation and back up documentation, was developed in just a few weeks.

Outcome:

The business case uncovered the potential for the Brand to achieve Specialty Blockbuster status, with a targeted commercial effort allowing to generate revenues significantly higher than the Wall Street analyst consensus.

The company accepted an offer from another suitor at a valuation 40% higher than the initial unprompted offer.