Situation Assessment

• Prazer Therapeutics is a Korean-based biotechnology company focused on developing orally available, brain-penetrating small molecule therapeutics with a novel approach to targeted protein degradation

• Prazer is developing novel targeted protein degraders utilizing their proprietary SPiDEM® Technology, initially focused within neurodegenerative disease

• Locust Walk initially began discussions with Prazer in late 2024 to help with strategic partnerships and fostered the relationship over the next 6 months, meeting again at the BIO conference in June 2025. As Prazer was approached by J&J in late 2025, trust had been built with the Locust Walk team so Prazer began a formal engagement with Locust Walk to assist in term sheet discussions with the J&J team, ultimately leading to improved deal terms over the course of a rapid-paced 8-week negotiation

Key Activities

• Worked closely with outside legal counsel and the Prazer management team to negotiate with Johnson & Johnson to maximize the value of the collaboration

• Built a comprehensive DCF model and analyzed multiple comparable strategic transactions for early-stage licensing deals within neurodegenerative indications to provide validation to background valuation assumptions in support of negotiations

• Led negotiations on term sheets and deal documents, providing robust rationale for counter offers and also supporting Prazer on key non-economic terms in the agreement

• Offered strategic advice and provided competitive intelligence support, enabling increased preparedness and streamlined conversations between Prazer and J&J 

Successful Outcome

• Successfully negotiated significant improvements in economics leading to substantial increases in both upfront and total deal value to materially impact the value of the agreement for Prazer

• Ensured key issues were addressed on a rapid timeline resulting in a signed agreement in less than 8 weeks after submission of the initial non-binding offer

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