Family Office Optimizes Biosimilar Investments Through Strategic Capital Market Transaction

Client Challenge

A family office that specializes primarily in the healthcare and life sciences had made several investments in biosimilar development projects over the years. To streamline its biosimilar shareholdings, the family office contemplated a capital market transaction with a biosimilar development company. They reached out to Alira Health to appropriately value two biosimilar assets, facilitate discussions with its management, and coordinate the capital market transaction as an asset-contribution in kind.

Our Approach

Alira Health’s Transaction Advisory team, in collaboration with the Management Consulting and Market Access teams, conducted an in-depth analysis of the two biosimilars that served as the basis of valuation for the subsequent capital market transaction, including sales analysis of reference biologics, competitive landscape of biosimilars, launch strategies, pricing and reimbursement analysis.

Alira Health then performed the following activities:

• Developed a multi-scenario valuation model to arrive at a fair valuation for the two biosimilar assets as well as a small development unit
• Considering the valuation of the transaction, assessed different strategic scenarios to carry out the capital market transaction
• Supported due diligence activities
• Assisted with drafting of relevant legal documentation
• Developed a project management plan for the execution of the complex transaction and coordinated workflows across multiple external stakeholders until transaction closing

The Transaction Advisory team then worked with Alira Health Management Consulting and Market Access teams on the pricing and reimbursement analysis, to ensure the flawless 360-degree support for the family office.

Outcomes

Alira Health provided the family office with a solid understanding of the assets, supported in navigating the capital market transaction process over a 12-month period and facilitated in all phases of the transaction – from valuation of the assets to closing of the capital raise. The biosimilar development company acquired all rights to the biosimilar development programs, as well as a small development unit owned by the family office, through a capital increase and asset-contribution in kind. The transaction strengthened the biosimilar development company’s position as an integrated biosimilar company and the family office became its largest individual shareholder.

Success Factors

Alira Health was uniquely positioned to advise in this complex transaction process due to its deep-rooted expertise in biologics, integrated consulting approach and seamless collaboration of multiple practice areas.

The critical steps in execution of this project were close collaboration and alignment with the family office and all other stakeholders involved, in-depth market research and expertise to conduct a valuation for the capital market transaction that was supported by a third-party fairness opinion, and timely execution of each workflow to ensure that the project plan was successfully implemented.

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