Increasing your likelihood of success in dealmaking discussions

In-licensing and acquisitions are fast tracks for pharmaceutical companies to access groundbreaking technologies and assets that will drive the next generation of transformative patient treatments. Dealmaking is not a trivial process. Audience members during the recent Clarivate webinar Emerging Deal Trends in Biotech and Pharma identified three of the biggest challenges they face when securing deals.

• Valuing assets and structuring deals (27%)
• Finding the right partners (26%)
• Demonstrating innovation and market potential (26%)

Valuing assets and structuring deals

In dealmaking discussions, pharma companies need to consider how to value assets and structure carefully deals to ensure they can maximize value for their shareholders and achieve their strategic objectives. Companies need to carefully assess the value of the assets being acquired or licensed, considering factors such as the stage of development, market potential, the competitive landscape and intellectual property protection. They must also consider the most appropriate deal structure, such as an outright acquisition, licensing agreement, or joint venture, to achieve their strategic objectives while negotiating financial terms that are fair and reasonable, considering factors such as upfront payments, milestone payments, royalties, and other economic considerations.

Covering over 20 therapy areas and early-phase assets , Cortellis Deals Intelligence provides the broad and deep coverage of global deals needed to assess the value of an asset confidently. Using a patented predictive analytics algorithm, companies can calculate potential deal sizes at each stage of drug development and uncover how likely it would be for a drug to progress to the next phase of growth if it were partnered.

Finding the right partners

Selecting the right partners in pharma dealmaking is crucial to ensuring the success of a partnership. Company executives should assess whether the potential partner's strategic goals align with their own and whether the partnership will help both companies achieve their objectives. This requires robust and comprehensive due diligence on potential partners, including their financial status, regulatory history, and reputation in the industry, as well as whether the potential partner has the necessary capabilities and expertise to support the partnership and achieve the desired outcomes.

Cortellis Deals Intelligence allows companies to identify with confidence in-license opportunities based on an ideal candidate's characteristics or find out-licensing partners based on their experience in the field and/or gaps in their portfolio. It is also possible to search for potential partners by therapeutic area, technology or stage of development, and dive deeper into who they've partnered with and past payment terms.

It also helps dealmakers perform due diligence on potential partnerships or M&A opportunities with the critical data essential to understanding deal structures, financials, contracts, etc. With an extensive contract collection, including unredacted versions, companies can evaluate full deal terms of transactions a potential partner has agreed upon in the past.

Demonstrating innovation and market potential

Biotech executives can demonstrate the innovation and market potential of their offering in dealmaking discussions by using market research and projections to demonstrate the potential size and growth of the market, how it could impact patient outcomes and healthcare costs, and how it represents a step forward in the field by offering a unique solution compared to existing treatments. Pharma executives are keen to see clinical data, preclinical studies, and real-world evidence that support claims about the efficacy and safety of the offering. Moreover, having a clear insight into how the asset will navigate the regulatory landscape increases the likelihood of a successful partnership or investment.

Using Cortellis Competitive Intelligence, companies can differentiate their assets by assessing the target market based on mechanism of action, disease area or technology, understanding competitor positioning, and conducting market analysis to identify current standards of care. With AI-based predictive analytics , Cortellis Competitive Intelligence enables users to accurately predict drug success rates and launch timelines, as well as access reported and forecast sales for similar drugs and companies to provide benchmarks to potential investors or advisory boards.

Companies, using Clarivate Disease Landscape and Forecast offering, can also gain a thorough understanding of the disease market on which to base critical business decisions and strategies, to identify unmet needs, prioritize opportunities and maximize the value of assets. As a one-stop source for an up-to-date, reliable, and actionable indication- or therapy area-specific market and epidemiology intelligence it provides a unique, holistic view of the disease market, including current landscape, forecasts, patient population and disease management insights.

You can view the webinar Emerging Deal Trends in Biotech and Pharma here, and read a follow-on report on successful partnering here. Learn more about Cortellis Deals Intelligence here.

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