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
