Picking the right exit By Sam Hall and Alastair J.J. Wood Illustrations by Tomasz Walenta Attributes that support an IPO exit: • Proof-of-concept clinical data on lead drug candidate - typically robust Phase IIb or later data that provide substantial evidence of efficacy and safety. • Legacy pharmaceutical partner to provide validation. • Defined near- to intermediate-term news flow, with clear data points and events that will drive stock price ac

Detailing the biotech life cycle. The inflection points of the drug development process Phase Discovery Preclinical Phase1 Phase 1b/2a Phase 2b Phase 3 FDA Review Marketed Drug Typical Cost ($mm) $5 $5-10 $5-10 $10-15 $15-25 $40-100 $5 $100s Sources of Capital Seed Venture Venture Seed Venture Seed Venture Growth Venture Growth Public Venture Growth Venture Public Growth Public The capital required for each

Common Pitfalls By Sam Hall and Alastair J.J. Wood Illustrations by Tomasz Walenta Common Pitfalls Concept and gestation: Scientific founders can sometimes forget that they are running a business and not a lab. It is important to use the seed capital to drive the enterprise, and not just the science, forward. Conversely, it is possible to rush a compound from discovery into the next phase - preclinical and expensive IND- (investigative new drug) enabling s

Financial Growing Pains of a Biotech Illustrations by Tomasz Walenta Large risks and high costs dominate the financial life cycle of a biotechnology company, but the potential payoffs are huge. By Sam Hall and Alastair J.J. Wood Illustrations by Tomasz Walenta Related Articles 2, legacy pharmaceutical companies typically pay biotech licensors a midpoint value of ~$220 million for Phase III drugs, compared with only ~$65 million for drugs in Phase I clinical