Transaction Case Studies

Sell-side engagement leading to commercial royalty deal

Situation Assessment

  • Flora Bioscience is a privately held diagnostics company focused on developing a women’s rapid yeast test, a proprietary, best-in-class lateral flow immunochromatographic diagnostic assay, specifically designed to identify and diagnose yeast-caused vulvovaginal candidiasis. ​
  • The team has plans for both a POC and OTC version of the diagnostic test. ​
  • Flora Bioscience has completed a pilot study confirming sensitivity and specificity vs. clinical diagnosis and is looking towards 510(k) submission. ​
  • The company engaged Locust Walk to run a comprehensive sell-side process to generate strategic demand from diagnostic, women’s health, infectious disease and consumer healthcare companies. ​

 Key Activities

  • Collaborated with management team to update and tailor marketing materials, revenue projections and due diligence materials for strategic audiences​
  • Developed a deep and broad outreach list to ensure coverage of potential strategics across the diagnostic, women’s health, infectious disease and consumer healthcare spectrum ​
  • Ran a comprehensive outreach process to ensure appropriate exposure for the transaction ​
  • Conducted financial analysis and precedent transaction analysis to assist in the evaluation of potential transaction values ​
  • Profiled and evaluated potential strategic partners to assist BOD and management team in selection efforts​
  • Integral in negotiating economic and non-economic terms for a commercial royalty deal​

Successful Outcome

  • Flora Bioscience successfully executed a commercial royalty deal with a partner that brings significant expertise in the sales and marketing of fungal diagnostics ​
  • The strategic partner provides a vast clinical network from which to run additional clinical trials to support regulatory clearance as well as a KOL network key to generating credibility and support for the product upon launch ​
  • The strategic partner also contributes a strong, existing sales network in both the POC and OTC setting​
  • The transaction provided (1) funding through regulatory clearance and (2) attractive royalty payments associated with the achievement of commercial milestones ​

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CLIENT: Flora Bioscience

TRANSACTION:

Led sell-side partnering process for a women’s health infectious disease POC diagnostic