Situation Assessment

• Strategic Science & Technologies, LLC (SST) is a private, specialty pharmaceutical company which has developed a proprietary, topical drug delivery platform, KNOSIS™, for use with multiple small molecule entities.
• The company’s lead asset, IbuCream (topical ibuprofen), is in late stage clinical development for over-the-counter (OTC) treatment of acute pain. IbuCream has the potential to be the first, FDA-approved topical NSAID for the US OTC market.
• IbuCream was previously licensed to a global pharmaceutical and consumer healthcare company. SST reacquired the rights to IbuCream in late 2013 when its partner changed strategic direction and discontinued the product’s development.
• SST engaged Locust Walk Partners (“LWP”) to help develop and execute corporate partnering strategies to advance the asset. This engagement is a continuation of a 5-year advisory relationship between SST and LWP.

Key Activities

• Locust Walk Partners pursued a focused partnering effort for IbuCream
• Repositioned the confidential management presentation and story for target corporate partners active in the OTC commercialization of analgesic therapies
• Successfully addressed sensitivities pertaining to IbuCream’s reacquisition
• Conducted outreach and management presentations with a range of target partners
• Worked closely with SST management to stage/sequence due diligence

Constructed a range of potential deal structures, serving as lead business term negotiator with each party Successful Outcome As a result of Locust Walk’s effort:

• SST received three bona fide term sheets from leading OTC / consumer healthcare companies
• A well-orchestrated, competitive process yielded a 50% increase in deal value from initial offer to the final, negotiated deal
• LWP closed an option deal with one of the world’s largest healthcare and OTC companies. The partner received rights to acquire US IbuCream commercialization rights upon NDA approval.
• Preserved ex-US rights for follow-on deals with international partners