Transaction Case Studies


Situation Assessment

  • Regenacy was spun-out from Acetylon Pharmaceuticals in connection with Celgene’s acquisition of Acetylon in late-2016
  • Regenacy’s lead program is a first-in-class, Phase II-ready HDAC6 inhibitor, ricolinostat, with safety data from over 250 patients
  • Regenacy was seeking to advance ricolinostat through Phase II clinical trials for diabetic peripheral neuropathy
  • To maximize optionality, competitive pressure, and leverage with interested parties, Locust Walk and Regenacy determined a multi-track process would increase the likelihood of the best outcome
  • As a result, Locust Walk was engaged to solicit investors, global strategics, and Japanese regional partners

Key Activities

  • Prepared high-impact marketing materials (teasers, management presentations, and a private placement memorandum) to emphasize ricolinostat’s disease modifying potential to treat diabetic peripheral neuropathy (DPN) and additional peripheral neuropathies 
  • Conducted a broad, targeted outreach campaign to hundreds of global and regional life-science focused VCs, family offices/high net worth individuals, corporate VCs, and institutional investors 
  • Conducted a comprehensive outreach campaign to over 50 global strategic partners and 28 Japanese regional partners
  • Led numerous companies and investors through a confidential due diligence process and facilitated discussions with several interested parties, generating multiple term sheets for both financing and strategic alternatives and confirming strategic interest post-Phase II trial
  • Conducted financial and precedent transaction analysis to assist in the company valuation
  • Provided guidance on economic and non-economic terms and final agreement negotiations
  • Worked in collaboration with legal teams to drive financing to close

Successful Outcome

  • Regenacy successfully raised an equity financing round ($30M) led by Cobro Ventures and Taiwania Capital with participation from 3E Bioventures Capital, Yonghua International, Viva Biotech, and TA YA Ventures
  • Funding will be used to bring ricolinostat through Phase II trials in DPN and exploratory studies in chemotherapy inducted peripheral neuropathy
  • In a volatile funding environment, Locust Walk was integral to guiding investors to a successful closing of the financing

Link to press release

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