Transaction Case Studies

Execution of Japan partnership for a novel oral testosterone in less than 2 months

Situation Assessment

• TesoRx Pharma LLC is a private biopharmaceutical company focused on the development innovative therapeutics in the urology and oncology fields using proprietary delivery system technology.
• TesoRx is a long-standing client of Locust Walk. In 2014, Locust Walk successfully negotiated an $85M transaction between TesoRx and the Aspen Group.
• TesoRx was interested in licensing Japan rights to their novel oral testosterone product, THG-1001, for the treatment of male hypogonadism. TesoRx initiated discussions with Japanese companies, including ASKA Pharmaceutical (Tokyo, Japan), a leading company in the hormone therapy field in Japan.
• In November 2016, TesoRx engaged Locust Walk to assist in expediting a transaction for THG-1001 in Japan. They were keen to leverage the Locust Walk network in Japan and its relationships with senior officers at ASKA.

Key Activities

• Identified the strongest potential partners in Japan for THG-1001, focusing on companies in the urology and hormone therapeutic areas. Leveraged Locust Walk contact network to conduct outreach to potential Japanese partner companies.
• Conduct face-to face meetings with Japanese companies and TesoRx in Japan. Locust Walk managed the competitive deal process and continued to negotiate deal terms with ASKA.
• Met regularly with top executives at ASKA to understand the key issues inside ASKA that could impact transactability.
• Led final negotiations with ASKA regarding deal structure and economics. Worked between TesoRx and ASKA to overcome challenges and hurdles, many unique to the Japan pharmaceutical environment.

Successful Outcome

• TesoRx engaged Locust Walk in November 2016 to drive its in-house process of securing a Japan partnership to the most beneficial conclusion. Our combined efforts led to TesoRx and ASKA consummating a partnering arrangement for Japan rights to THG-1001 on December 30, less than 2 months after Locust Walk was engaged by TesoRx.
• Under the terms of the partnership, ASKA will pay upfront and license fees and milestones to TesoRx. ASKA will also share in the development costs and pay royalties to TesoRx on sales for THG-1001 in Japan.

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