Business Case

Developed a rare liver disease market landscape for an investment group looking to identify potential acquisition targets for an expansion to the U.S. market and performed commercial due diligence resulting in an acquisition of over $2B

The investment strategy arm of a mid-sized Italian pharmaceutical company sought to diversify to the U.S. market while conforming to existing competency in liver disease. LSC evaluated several potential hepatic indications with our client and conducted a deep dive analysis in the U.S. market to understand expected entry of pipeline competitors and the impact of their entry on market share over the next 10 years. The result was a quantitative model encompassing numerous qualitative aspects including clinical differentiation and use case, physician preference, patient needs, and product profile aspects such as tolerability and dosage convenience. From this analysis, our client was able to identify and prioritize three potential acquisition targets.

Our client quickly engaged us in a follow-on due diligence project for the top acquisition target. LSC quickly conducted a due diligence evaluating the commercial potential and NPV of the enterprise broken down by leading pipeline candidates based on their competitive differentiation, commercial potential, and risks. LSC also evaluated the investment necessary to ensure pipeline development projects could proceed without delay and identified a net value of the enterprise under three scenarios. Our client signed a letter of intent with the target company within one week of the project’s completion for a price exceeding $2B.