Transaction Case Studies

Situation Assessment

Eagle Pharmaceuticals (Nasdaq: EGRX) is a US-based pharmaceutical company developing and commercializing treatments for critical care and oncology patients
Eagle anticipated an upcoming revenue gap due to legacy product erosion and patent cliffs
Eagle was interested in expanding its corporate development capabilities to include comprehensive search and evaluation, outreach and negotiation, and transaction execution support
Locust Walk worked directly with Eagle’s CEO and management team to provide a turn-key corporate development team and support all activities
By close of engagement (~12 months), Eagle successfully transacted on two deals supported by Locust Walk (acquisition of Acacia Pharma; equity investment and option to acquire of Enalare Therapeutics)

Key Activities

Conducted comprehensive screening efforts to identify a short list of high-value and transactable targets in critical care and oncology
Continuously conducted ‘background screening’ for additional opportunities in parallel to pursuit of initially identified targets
Crafted deal theses and tailored messaging/outreach to targets in order to position Eagle as the optimal buyer, and ideally subvert competitive processes
Supported confidential due diligence efforts, valuation and terms structuring, negotiations and discussions with target(s), and Board of Directors material creation
Comprehensive process led to multiple active deals driven and coordinated by the Locust Walk team in collaboration with Eagle’s legal and business development counterparts

Successful Outcome

Completion of Eagle’s $104M buy-out of Acacia Pharma providing Eagle with two high-growth and already approved hospital products
Completion of Eagle’s equity investment and option to acquire clinical-stage company, Enalare Therapeutics; deal expands Eagle’s development pipeline with a high upside and novel respiratory stimulant to fill in future revenue gaps