Transaction Case Studies

Japan collaboration for dermatology asset including a strategic investment from a leading dermatology company

Situation Assessment

• Veloce BioPharma. is a clinical-stage, private biopharmaceutical company, developing PVP-I based novel drugs for various dermatology and ophthalmology indications. Two of its drugs are currently in Phase 2 trials: VBP-926 for chemotherapy-associated paronychia, and VBP-245 for mulloscum contagiosum.
• Veloce was interested in securing Japanese partners for their novel drugs and in April 2017, engaged Locust Walk to assist in expediting an Asian transaction for their products.
• In September 2017, Veloce and Locust Walk successfully consummated a collaboration between Veloce and Maruho on an undisclosed dermatology asset for Japan, which included an equity investment from Maruho to Veloce.

Key Activities

• Locust Walk reached out to Japanese companies with expertise in dermatology, leveraging our network with business development executives across large, medium and small companies in Japan.
• Our outreach resulted in a competitive partnering process, as multiple companies entered into confidential diligence.
• Locust Walk carried out quantitative market research on the dermatology asset which demonstrated a significant unmet medical need in Japan, driving interest in the asset from various Japanese companies.
• Locust Walk helped Veloce determine the pre-money company valuation through an detailed analysis of future cash flows from Veloce’s portfolio.

Successful Outcome

• Veloce engaged Locust Walk in 2Q 2017 to drive the process for securing an Asian partnership to the most beneficial conclusion. Our combined efforts led to Veloce and Maruho consummating a Japan licensing and investment collaboration in September 2017, less than 5 months after Locust Walk was engaged by Veloce.
• Maruho also made an equity investment into Veloce, providing Veloce with a leading Japanese dermatology company as a strategic partner.

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