Client Situation
- Oncology focused, early-clinical EU biotech
- First to clinically overcome tox problems previously associated with targeted pathway
- Successfully raised a total of $50m privately
- $30m spent, $20m remaining
Treehill Mission
- Understand hurdles from an investor’s perspective to raising capital
- Establish certainty about most financeable corporate & product development strategy forward
- Support management & board decisions to change the company’s trajectory
Findings
- World-class preclinical and phase 1 data package, in line with a large pharma buyer’s expectations
- Not ready for phase 2. Lack of patient identification capabilities, high risk of failure
- Shareholder base and pool of capital not suitable to support next development stage
- EU-centric operations, not internalized into US or Asian hot-spot communities/ centers of excellence
Recommendations & Implementation
- Strong fundamentals underscore significant value creation potential
- Don’t start phase 2. Expand phase 1b. Augment biomarker capabilities, understand response drivers
- Devise integrated product development and capital raising plan. Build storyline to near-term IPO
- Broaden geographic coverage into US to further access to expertise, relationships, and capital