John Doe
Essay by sasdasdas • November 8, 2016 • Article Review • 371 Words (2 Pages) • 1,634 Views
Purinex Purinex Jarrett Berl
Bryan Olson
Bryant Hicks
Matt Biegner
Matt Cochran (Intern) Company Background Fictional Company
Drug Discovery and Development
Two potential therapeutic compounds
Aimed at treating Sepsis and Diabetes
35 Patents Pending
Gilad Harpaz CFO Sepsis/Diabetes
Sepsis
Severe infection leading to a systemic inflammatory response
Can cause organ dysfunction and death
Leading cause of death in noncoronary ICU patients
Diabetes
285 million people worldwide
"One of the most common causes of death and disability in America"
Bodies ability to process glucose
Impacts eyes, kidneys, nervous system Financing option that provides:
Highest company valuation
Mitigates Financial Risk by
Increasing Short-Term Liquidity
Increasing "credibility value"
Greatest Control Decision Criteria Advantages Wait Six Months 12% Retain 100% Control
Valuation $25m Disadvantages Possible down round scenario
Pre-money valuation $5m The Partnership Profit sharing on future drug sales Costs Up-front funds
R&D funding
Supply production facilities Benefits Immediate Long-Term
Milestone payments
Royalties
Shared liabilities, resources and financial commitment The Sepsis & Diabetes drug compounds are poised with appropriate applications for partnership deals with “Big Pharma” firms Drug Valuations Discount Rate Sepsis Diabetes Angel Financing
Meets Requirements
Highest valuation
Lower financial risk
Minimal Control Loss Conclusion -$60,000 11 Months No Sales $700,000 Current Financial Position Biotech Financing Trends Cons Pros Immediate Access to Funds
Potential to increase value of the Partnership Significantly lower company valuation
Loss
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