Thorough Due Diligence Facilitates Investment Deal
A pharmaceutical distribution company was looking for guidance on a potential investment in a venture-backed company that was aligned with a large pharmaceutical company. The target company was developing a novel drug therapy for the treatment of a diabetic condition. The pharma distribution company needed help performing due diligence on the prospective portfolio company’s development plan, regulatory issues, intellectual property and possible contract restrictions and risks associated with the investment, as well as the terms of the investment.
AGG’s legal team, comprised of experts in its Corporate and Securities, Food and Drug and Intellectual Property practices, undertook extensive due diligence on the prospective portfolio company, including review of contracts, manufacturing and vendor arrangements, and clinical trial agreements. Additionally, AGG advised on the FDA regulatory pathway and prepared a report on the potential investment.
The parties were able to timely conclude a successful co-investment comprised of an initial investment by the client coupled on subsequent investments by existing venture capital and strategic investors in two stages, with the initial investment occurring before year end and subsequent investments occurring when clinical milestones are reached.
- Stephen D. Fox
- Joel N. Gossner
- Alan G. Minsk