|
<HOME
Biotech
Alliances Intelligence
The Recap Portfolio
by Jennifer Doyle
Recombinant Capital
www.recap.com
Recombinant Capital (“Recap”)
is a San Francisco-based consulting firm,
founded in 1988, specializing in biotechnology
alliances, alliance revenues, and company
capitalization. Recap has studied the
biotechnology industry from its birth to the
present and has built large and detailed
biotechnology business intelligence databases,
including our Alliances, Revenues, and
Valuations databases, available at our two web
sites,
Recap.com and
rDNA.com.
Bio-Pharmaceutical
Alliances:
The Recap Alliances database currently
contains 23,786 fully-searchable high-level
summaries of biotech alliances commenced since
1973. Recap analysts mine several industry news
sources each day, recording each biomedical
alliance, together with the source document. A
multitude of specific characteristics for each
alliance are tracked, such as: the alliance date
and dates of revision, alliance type (e.g.,
license, sublicense, acquisition, supply, etc.),
product type/technology (e.g., synthetics,
monoclonals, devices, etc.), stage of
development, product disease categories, payment
amounts and types (upfront, equity, R&D,
milestone, and royalty amounts, where
available), the types of parties involved (e.g.,
Biotech, Pharma, University).
We later go through the public
documents of all companies that file reports
with the U.S. Securities and Exchange Commission
(“SEC”) to acquire any contracts and other
information pertinent to the alliance. The birth
in the mid-1990’s of the SEC’s electronic
“EDGAR” database of filed documents
revolutionized this information flow to the
public. Recap supplements EDGAR-derived
contracts and reports with our extensive
collection of “pre-EDGAR” documents and reports,
scanned into pdf files and attached to the
relevant alliance. In addition, Recap makes
numerous requests to the SEC under the Freedom
of Information Act (“FOIA”) to obtain unredacted
copies of contracts for which important details
have been blanked out or “redacted” by the
filing company. Redaction is a standard practice
used by companies to protect the financial and
other important details of an alliance. After a
certain amount of time, however, these details
become available to the public. Recap has
obtained a significant number of fully
unredacted contracts in this manner.
Recap creates detailed
analyses for selected alliances, distilling the
essential information from the contracts and
amendments of an alliance into a standard,
condensed format. One hundred pages of contract
will typically yield a 10-12 page Analysis. The
Analysis provides an overview of the scope and
history of the alliance, an outline of payments
(upfront, equity, R&D, milestones, royalties,
transfer prices, etc.); R&D, manufacturing, and
commercialization responsibilities; the license
grant, field of use, and territory; royalty
offsets and 3rd party royalty responsibilities;
co-promotion and other options; alliance
management; and equity provisions. Importantly,
the content goes in defined locations. Thus, the
royalty information and offsets will always be
found in the same place in each Analysis
document.
Our analysts then supplement
the Analysis with any subsequently-released
information within the SEC-filed reports of the
alliance parties. In this manner, the Analysis
will often record the actual payment of
milestones and the milestone amounts, the
pricing of equity investments, and occasionally
the back-calculation of royalty rates.
Biotech Company Valuations:
Our Valuations Histories Database stores
financing rounds and step-wise valuations for
676 biotech companies in tabular and graphic
form. These valuation histories are based on
primary share issuance from the date of founding
until the most recent equity financing or other
share issuance. The graphic display also
includes a real-time quote of the current market
cap of the company, allowing the most up-to-date
look at the step-ups (or step-downs) in a
company’s valuation from founding until the
present.
Alliance Revenues:
Recap’s Revenues database and Revenue
Reports show a breakdown of alliance revenues
received or paid by a particular company. This
data is obtained from SEC-filed reports and is
tracked on a quarterly basis. The Revenues
database is available through the rdna.com
subscription site and may be viewed by Biotech
Company (recipient) or by the Payor company.
Alliance revenue may also be displayed in
aggregate by therapeutic sector (e.g., Cancer,
Cardiovascular, CNS, etc.).
Analyst Notebook:
In addition to our subscription and
consulting services, Recap provides a collection
of material from our consultants in the
Analysts’ Notebook section of
www.recap.com, including a list of recent
deals, a collection of “Deal Snapshots”,
Alliance Trends slides (average and median deal
terms for various types of alliances), a
selection of key/flagship deals, articles from
Signals Magazine (see below) grouped by topic,
and a collection of recent slide presentations
by our analysts.
Signals Magazine:
Recap publishes the online magazine, Signals,
providing analysis of current trends and new
developments affecting the biopharmaceutical
industry. Signals’ main areas of emphasis are
alliances, financial trends, technology
developments, and profiles of interesting people
and companies. See
www.signalsmag.com for the most recent issue
(featuring reverse mergers)
|