Transaction Case Studies

REPEAT ENGAGEMENT FAIR MARKET VALUATION SUPPORTS A SUCCESSFUL MERGER AND $4B ACQUISITION

Situation Assessment

  • Asklepios Biopharmaceutical (AskBio) is a privately held, clinical stage biopharmaceutical company focused on the development of novel AAV gene-therapies
  • In addition to assets developed in-house, AskBio maintains equity stakes in multiple external therapeutic and manufacturing subsidiaries, and is a majority equity shareholder in NanoCor Therapeutics (NanoCor), who is developing an AAV gene therapy (NAN-101) for congestive heart failure (CHF)
  • Following a successful engagement with Locust Walk to value AskBio and its Brain Neurotherapy Bio (BNB) subsidiary, AskBio decided to engage Locust Walk a second time to provide a fair market valuation of NanoCor based on recently achieved clinical data. Engagement was designed to enable a planned IPO by simplifying their corporate structure
  • Locust Walk updated NAN-101’s valuation to reflect an updated probability of success to support a merger of NanoCor and AskBio​​

Key Activities

  • Worked with AskBio’s corporate strategy team to define deal transaction goals
  • Refined assumptions from Locust Walk’s previously constructed discounted cash flow/sum-of-the-parts model for AskBio based on new, material updates
  • In addition to updating prior materials, Locust Walk further analyzed and contextualized:
  • Comparable therapeutic data from historical and current CHF gene therapies
  • Comparable public gene therapy companies focused on CHF (i.e. Celladon)
  • Informed and provided guidance to AskBio management team on relative value ranges for NanoCor that constituted a fair transaction based on Locust Walk’s view

Successful Outcome

  • Locust Walk developed a standalone valuation range for NanoCor based on multiple valuation methodologies that directly supported negotiations of a merger that closed together with Bayer’s acquisition of AskBio in Q4 2020
  • Updated transaction materials from prior Locust Walk analysis informed downstream negotiations with Bayer and enabled AskBio to progress rapidly towards execution
  • Deal terms in NanoCor and Bayer transactions were in line with Locust Walk’s valuation ranges

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