Need:
The CEO of a Swedish Advanced Therapy company asked MSC to support the due diligence process and term sheet analysis in an asset licensing negotiation and transaction with the aim of raising the deal value. This was a continuation of the successful work that MSC did around company repositioning and valuation assessment for the company – read more here.
Assignment:
MSC was asked by the company’s CEO to support an Advanced Therapy Medicinal Product (ATMP) asset licensing negotiation. The process included responding to due diligence questions connected to the valuation MSC previously conducted of the asset in question. In addition, the MSC team helped increase the company’s value share by analyzing the term sheet and supporting the decision-making process.
MSC’s proprietary valuation model was used as an important tool to assess counteroffers and selecting the most strategically beneficial offer. By utilizing the valuation tool, MSC could interpret the implications of each offer structure on the final value and visually demonstrate to the CEO and board members the impact the different offers could create.
Based on the results, it was possible to increase the agreement value by more than 10% by adjusting the royalties, milestones, and upfront payment structure. Ultimately, the term sheet was finalized for the CEO to bring it to the Board’s approval, and the deal was successfully concluded.
