Innovation Pharmaceuticals Inc (IPIX)

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Document - Getting Ready for a BioPharma Partnering Deal

A typical large pharmaceutical might see 500 to 1,000 opportunities in a given therapeutic area. Only 100 or so of those will go on to non-confidential meetings and only 50 or so of those will end up going to Confidential Disclosure Agreements (CDAs) and confidential meetings.

For a BP, only 5-10% of drugs ended up in a CDA and IPIX has ~20!

Unfortunately, getting a deal done can take a long time. After initial talks, getting a CDA can take a month or more. It might take another month for the other side to assemble appropriate team members and schedule team meetings.

It can then easily take another month for them to evaluate all the information and to decide that they will indeed go forward with the formal due diligence process. From the point when the other party has decided to go forward with term sheet negotiations, it can take another six to twelve months to get to a signature on a full agreement.

Key point: 6-12 months from negotiation to agreement.

Diligence and a Good Virtual Data Room

When a potential partner begins the due diligence process, they’re trying to get to know you and your asset in greater detail, and they’re attempting to verify what they’ve been told.

Give them access to your experts, provide overview presentations, and answer questions. In short, spend the time it takes to make sure they really understand it.

Virtual data room - check.

https://www.sharevault.com/downloads/whitepapers/ShareVault_WP_Getting_Ready_for_a_Biopharma_Partnering_Deal_FINAL.pdf?__hssc=16127337.1.1427209750908&__hstc=16127337.64b918542874cd0679102e2d18568c02.1422297947502.1425312467697.1427209750908.8&hsCtaTracking=7c7c31d5-48be-4813-9daf-bb4f6ff94240%7Caf5cb8b3-c342-4657-beb8-d6e21b94a3b3