Transaction Case Studies

Regional License Agreement for an Oral Unmodified Testosterone Replacement Therapy

Situation Assessment

  • TesoRx Pharma, LLC, is a pharmaceuticals company focused on rapidly developing and commercializing pharmaceutical products in specialty markets. The lead product candidate is TSX-002, the only oral unmodified testosterone replacement therapy in development.
  • Aspen Pharmacare (APN) is a global supplier of branded and generic pharmaceuticals with significant presence in Africa, Asia, Latin America and other ex-US / ex-EU territories.
  • TesoRx engaged Locust Walk Partners as its exclusive financial and strategic advisor to lead the TSX-002 partnership effort.

Key Activities

  • With a four-person team in multiple geographies, Locust Walk Partners led the partnership process for TSX-002, identifying and reaching out to potential partners, guiding due diligence and negotiating deal terms to maximize value for TesoRx.
  • Identified and conducted outreach to potential partners with appropriate strategic and geographic focus (US and worldwide).
  • Developed product positioning materials to emphasize key differentiators of TSX-002.
  • Conducted qualitative and quantitative market research and revenue forecasting in multiple regions to drive and increase deal value.
  • Led due diligence processes, maintained electronic data room, compiled clinical, legal and financial information to support deal execution.
  • Led negotiation of deal terms to maximize value for TesoRx.

Successful Outcome

  • TesoRx and Aspen successfully completed an exclusive license agreement for Latin America, Africa and Asia Pacific (ex-Japan, ex-China) territories.
  • Deal terms included upfront payments comprised of a combination of cash and equity investment totaling $15M ($5M deferred). In addition, the deal included clinical, regulatory and commercial milestones, putting the total deal value at nearly $100M not including royalties, which could reach double-digits.
  • Locust Walk Partners continues to serve as an advisor to TesoRx to pursue deals in the US and other territories.

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Regional License Agreement and Investment for an Oral Unmodified Testosterone Replacement.