Transaction Case Studies
Multi-Track Buy-Side Engagement Leading to IPO for Rare Endocrine BioPharma
- Strongbridge Biopharma (NASDAQ: SBBP) is a public biopharmaceutical company focused on the development, in-licensing, acquisition and eventual commercialization of multiple complementary products and product candidates within franchises that target rare diseases. The initial focus is to build a rare endocrine franchise.
- Upon engaging Locust Walk, Strongbridge, then Cortendo, had a single lead asset COR-003 levoketoconazole, a cortisol synthesis inhibitor for the treatment of Cushing’s syndrome, and a market capitalization of ~U.S. $50M.
- Strongbridge sought to acquire or in-license additional rare, endocrine assets to enhance its existing portfolio and leverage its development expertise.
- To fund business development and corporate activities, Strongbridge pursued, in tandem, a path toward a U.S. public listing and U.S. crossover financings.
- Ran a comprehensive search and evaluation of the rare disease landscape to identify opportunities presenting a strong fit with Strongbridge’s rare endocrine portfolio
- Conducted due diligence, valuation, and led term sheet negotiations
- Identified and introduced Strongbridge to leading biotech investors, and participated in certain investor discussions
- Played a role in syndicate selection through introductions to leading investment banks and coordinating bake-off with Strongbridge’s management and board
- Provided counsel throughout the IPO process and supported development of investor/filing materials
- Strongbridge successfully in-licensed COR-004, a second-generation oligonucleotide in Phase 2 for the potential treatment of acromegaly, from Antisense Therapeutics for $5M upfront and $105M in total milestones (May 2015).
- Strongbridge successfully acquired COR-005, a novel somatostatin analog in Phase 2 for the potential treatment of acromegaly, from Aspireo Pharmaceuticals for $30M in stock and $3M in cash (May 2015).
- Strongbridge completed mezzanine financings of $26.4M (February 2015) and $33.2M (June 2015)
- Leading biotech institutional investors
- Locust Walk Capital was an investor in Strongbridge’s second financing
- Strongbridge raised $25M in a U.S. initial public offering issuing 2,500,000 shares at $10 per share (October 2015)