Transaction Case Studies
Re-partnering Development Stage OTC Asset for Specialty Pharma Company
- Strategic Science & Technologies, LLC (SST) is a private, specialty pharmaceutical company which has developed a proprietary, topical drug delivery platform, KNOSIS™, for use with multiple small molecule entities.
- The company’s lead asset, IbuCream (topical ibuprofen), is in late stage clinical development for over-the-counter (OTC) treatment of acute pain. IbuCream has the potential to be the first, FDA-approved topical NSAID for the US OTC market.
- IbuCream was previously licensed to a global pharmaceutical and consumer healthcare company. SST reacquired the rights to IbuCream in late 2013 when its partner changed strategic direction and discontinued the product’s development.
- SST engaged Locust Walk Partners (“LWP”) to help develop and execute corporate partnering strategies to advance the asset. This engagement is a continuation of a 5-year advisory relationship between SST and LWP.
- Locust Walk Partners pursued a focused partnering effort for IbuCream
- Repositioned the confidential management presentation and story for target corporate partners active in the OTC commercialization of analgesic therapies
- Successfully addressed sensitivities pertaining to IbuCream’s reacquisition
- Conducted outreach and management presentations with a range of target
- Worked closely with SST management to stage/sequence due diligence
Constructed a range of potential deal structures, serving as lead business term negotiator with each party
As a result of Locust Walk’s effort:
- SST received three bona fide term sheets from leading OTC / consumer healthcare companies
- A well-orchestrated, competitive process yielded a 50% increase in deal value from initial offer to the final, negotiated deal
- LWP closed an option deal with one of the world’s largest healthcare and OTC companies. The partner received rights to acquire US IbuCream commercialization rights upon NDA approval.
- Preserved ex-US rights for follow-on deals with international partners
CLIENT: Strategic Science & Technologies, LLC
US Option Agreement for IbuCream (topical ibuprofen)
PARTNER: Global OTC Player