Three cases that demonstrate why using OutMatch before jumping into clinical development is key
Willow Leaf Bio has ten promising preclinical drug candidates. All are equally scientifically valid and they’re similar in cost to develop through clinical trials.
The CEO and board look to CBO Mariah to help them come to a decision. She needs to recommend a candidate that will transact both on the right timeline and at the right value to begin funding successive candidates. Doing so will lessen Willow Leaf Bio’s reliance on dilutive funding.
Mariah uses MotionHall’s OutMatch to examine the partnership potential of each candidate. She also explores the M&A landscape to better understand how candidate prioritization will impact company attractiveness to potential acquirers. Mariah returns to the CEO and board with her findings.
“Only two candidates look very good to transact both on the timeline we want and the value we need to fund a second candidate later on,” says Mariah. “Of those two, only one looks good in an M&A scenario. To reduce our exposure to risk we should invest in the candidate that’s attractive to both the partnering and M&A markets.”
The board agrees with Mariah and the Willow Leaf team pursues this candidate as their new lead asset. OutMatch helped put Willow Leaf Bio in the best strategic position to succeed now and to fund further development of their pipeline in the future.
Eagle Therapeutics has hired CBO Shaheed to transact their lead asset. He’s learned that the company, like Willow Leaf Bio, started with ten equally promising preclinical candidates. Instead of using OutMatch to prioritize its candidates, Eagle Therapeutics chose to develop the candidate they were most interested in scientifically. Shaheed has been hired to find partners for this asset.
As one of his first steps at the company, Shaheed uses OutMatch to examine the field of potential partners for Eagle’s lead asset. As a result, Shaheed quickly discovers that the partnering landscape for this asset is actually quite underwhelming. There are a couple good potential partners but Shaheed knows these companies are all difficult to transact with. Meanwhile, the CEO and board have enormous expectations for the project they’ve put so much time and money into. They don’t take the news well and pressure him to find a way to meet their expectations.
By working carefully with the market for Eagle’s lead asset, Shaheed is able to build a campaign to enter and educate prospective partner organizations. He eventually drives up deal competition to get reasonable value on the transaction with favorable royalties, even though the CEO expected more. The CEO later acknowledges that the asset was a niche fit, and not as attractive to the broader partnering market as the team had thought. She thanks Shaheed for getting a tough deal over the finish line.
Seed Therapeutics also has ten great candidates and can’t decide which to prioritize between them based on scientific merits or interest. After a vote, the team committs to spend several years and substantial capital to develop its new lead asset.
Naomi, Seed’s CBO, assumes the scientific merit and important indication of the lead asset will make it an attractive prospect to the partnering market. Naomi doesn’t use OutMatch. She instead reaches out to her network hoping that the relationships she’s honed with the industry’s larger players will be sufficient to drive a transaction forward. But after a disheartening number of rejections, Naomi and her team are forced to consider small and medium partners at lower prices.
The team drives outreach and attends conferences hoping to meet compatible business partners. They educate a lot of potential buyers about their asset only to hear numerous reasons why it’s not a good fit. Many say there's not enough data, while others provide no response at all.
All this negative feedback alarms the CEO and board. They consider bringing on more financing to develop the asset further. One board member suggests preparing to commercialize the asset in-house. Another points out how expensive a salesforce is and that sufficient venture funding will be difficult to obtain.
Seed Therapeutics is unable to invest in their pipeline candidates since they’ve accumulated very little funding or capital. They contract several risk-based consultants to help find a partner for their asset, aware each day without a deal costs time and runway. Seed’s pipeline of potentially life-changing drugs goes unexplored. With limited capital remaining to support operations, the board begins to consider if an underwhelming M&A scenario is the best path forward from here.
Plan with clarity into the partnering market with OutMatch.
The names of people and organizations have been anonymized.