Transaction Case Studies
Forward Integration Of A Development-stage Orphan Drug Company By Acquiring The Rights To An Approved Orphan Drug
- Strongbridge Biopharma (NASDAQ: SBBP) is a global biopharmaceutical company focused on the development and commercialization, and of therapies for rare diseases with significant unmet needs.
- Upon beginning Locust Walk’s most recent engagement, Strongbridge had two mid/late stage drug candidates in development for rare endocrine disorders. One of these had been acquired as part of a previous Locust Walk engagement.
- Strongbridge sought to establish a commercial presence by acquiring an approved rare-disease drug, taking advantage of cost, revenue and other strategic synergies as well as creating a platform for future business development and commercial efforts.
- Working closely with the client, ran a comprehensive search and evaluation of thousands of assets in the orphan/rare disease landscape to identify commercial-stage opportunities of the right size and fit.
- Leveraged Locust Walk contact network to conduct outreach to a large number of potential partner companies in order to establish transactability.
- Identified numerous viable opportunities based on scientific rationale, commercial viability and synergistic fit; multiple discussions carried forward to advanced diligence & negotiations.
- Partnered with Strongbridge to conduct preliminary commercial due diligence, provide valuation modeling, and help negotiate the deal.
- Initiated and managed partner communications, establishing dialog and foundation for deal process. Overcame challenges and hurdles to deal execution.
- Strongbridge successfully acquired the US rights to Keveyis, the first and only FDA-approved treatment for hyperkalemic, hypokalemic, and related variants of primary periodic paralysis (a rare and debilitating neurological disorder), from Taro Pharmaceuticals for $8.5M upfront (in two installments) plus contingent milestones and a supply agreement (December 2016).
- Taro had ceased commercialization of Keveyis nine months after its 2015 launch, creating an opportunity for Strongbridge, whose management has deep experience commercializing orphan drugs.
CLIENT: Strongbridge Biopharma
Buy-side US rights acquisition for Keveyis