​How Smart Licensing of a Clinical-Stage Degrader Strengthened Oncology Pipeline

Posted by | Fuld & Company

​Objective 

​A US-based biopharma company aimed to expand its immuno-oncology pipeline by in-licensing immuno-oncology strategies through a differentiated clinical-stage targeted protein degradation asset (TPD) from an Asia-based biotech. The goal was to access novel science with a favorable risk profile in a competitive innovation landscape.

​Solution 

• ​Acquisition target identification and benchmarking: Fuld screened 30+ early-stage biotech companies with TPD assets in Phase 1–1b, prioritizing: 
• ​Strong mechanism of action (MoA) and biomarker rationale 
• ​Emerging efficacy and acceptable safety profile with minimal or no adverse effects 
• ​Proprietary IP and delivery technologies 

• ​Shortlisting and preliminary valuation analysis: Four candidates were shortlisted based on the above criteria, and a historical deal analysis of oncology licensing deals was conducted to benchmark deal valuations.  

• ​Due diligence: Fuld conducted in-depth scientific, clinical, and IP diligence across the shortlisted TPD assets, including: 
• ​Validation of target biology and MoA 
• ​Assessment of early-phase clinical efficacy, safety signals and biomarker strategies 
• ​IP diligence covering patent strength, global exclusivity timelines, and freedom to operate 

​This rigorous biotech due diligence process enabled the identification of two high-potential assets with clear differentiation, reduced risk, and strong strategic alignment with the client. 

• ​Deal structuring and valuation: Following detailed discussions with the client, we shortlisted one deal asset for a licensing offer and:   
• ​Developed early-stage oncology asset valuation using a risk-adjusted NPV model with PoS benchmarks (~10–15%) and development milestones 
• ​Analyzed upside across multiple clinical and commercial scenarios for enabling successful access to and scaling of innovation 
• ​Facilitated global rights for the asset with limited upfront and milestone-based payments, structured to mitigate early clinical risk while preserving upside 
• ​Negotiated royalties and opt-in rights for two additional platform assets  

​Outcome 

• ​The buyer successfully secured a license for a de-risked, Phase 1 TPD oncology asset with a differentiated clinical profile in alignment with the company’s long-term oncology strategy  
• ​Achieved favorable deal terms with milestone-weighted economics, global rights, reducing early-stage risk while preserving long-term value 
• ​Secured strategic pipeline depth through rights to two additional platform assets

Tags: BioPharma, Business & Industry Research, Healthcare & Life Sciences, Mergers & Acquisition, Private Equity Research