A Review of Preclinical Deals in 2017

Change must start somewhere. Deals both in preclinical and later stage women’s health applications are an important element we use when valuing my Company.  Preclinical deals are the most fascinating for me to unpack. With great risk comes great reward and I applaud the visionaries at the helm of these early-stage agreements. I believe the life blood of biotech is wrapped around patience, solid science and persistence.  And often times, the greatest discoveries are the simplest.

The most common element to these early stage deals is upfront Research and Development (R&D) capital to the investee. Many biotech/pharma companies will go years without profits. Growth models look more like stairs than a neat line. The true cost of drug development is hotly debated, but it is safe to assume that anywhere between $400 Million and $2.6 Billion depending on the drug application. The staggering cost of drug development is serious business and these early-stage companies will use this upfront capital to further mitigate risk and nominate their lead candidate(s) for clinical trials.

Another company profile garnering support from investors is a novel mechanism offering compelling preclinical evidence.  A well differentiated potential solution to an unmet need helps pave the way for a favorable FDA regulatory environment. Areas of major unmet medical needs can lead to shortened clinical trials which means faster clinical development. Quicker development can lead to long-term intellectual property (IP) protection. Oncology, orphan disease and speciality products are good examples fitting in this category.

Strong biological rationale is complimented by another investment strategy that seems to be exercised in these deals. Investors tend to gravitate towards investment into companies with strong leadership teams. Early stage companies allow for firsthand insight into management capabilities in which investors can use to validate prior work and experience and demand the impeccable execution needed for success.

Saving the best for last, these potential solutions would be transformative for patients. We are in this business to provide better patient outcomes; this is the real value of these early stage investments. As the Holidays come upon us and we reflect on what we are grateful for, I would like to say thank you to the people that invest in visionaries helping accelerate life science technology development and a special thank you to the visionaries.


(Written by: Founder and CEO of LifeStory Health Inc., Anna Villarreal, recaps some of the year’s preclinical deals.0

Anna Villarreal

Anna VillarrealVerified account

Founder and CEO at LifeStory Health
Leveraging her legal background and talent as a natural entrepreneur, Anna brings an unparalleled vision and energy to LifeStory Health. Anna has combined her experiences and challenges in business with her passion for women’s health care to create the fundamental building blocks of LifeStory Health. Her vision is compelling, and she has identified a unique niche in the market for consumer-based diagnostics, focused on monitoring the state of women's health. By sampling menstrual blood as a means of collecting biologically relevant proteins to test for internal health in a non-invasive manner, she is developing a method and business model that promises to influence women's health care. Under Anna’s leadership and vision, LifeStory Health has the potential to materialize into a successful operating public company that would be both profitable for shareholders and positive for women’s public health.
Anna Villarreal
I wanted to say thanks... Knowledge is like a kiss. You must share it to enjoy it.
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