Transaction Case Studies
MULTI-TRACK ENGAGEMENT LEADING TO $30M EQUITY RAISE
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
