The Legal Background to Biotech and Medtech Investing

1
The Legal Background to Biotech and Medtech
Investing
Dr Janita Good Head of Life Science, Osborne
Clarke
25 June 2008
2
Introduction

• Sector Differences
• Types of Investment
• Shareholders
• The Future

3
Sector Differences

• Biotech
• no revenue
• big potential upside
• binary outcome
• Medtech
• tech revenue model
• no blockbusters
• lower risk

4
Sector Difference

• Hybrid Biotech
• service/platform
• drug development
• Other related sectors
• devices
• heathcare
• diagnostics

5
Types of Investments (1)

• Senior Debt
• Equity
• tranching
• warrants
• convertibles
• down rounds
• exit management
• Venture Debt

6
Types of Investments (2)

• Corporate Venturing and Partnering
• Pharma venture arms
• Partners taking equity
• Investment in a programme
• Selling Royalty and Revenues
• Private Equity Buy Oats
• Public Markets

7
Shareholders

• Angels
• EIS and VCT Funds
• VCs and Private Equity
• Institutions
• Retail Investors

8
The Future

• Public markets closed
• VCs have raised funds and must spend
• Pharma may spin out biotechs
• Impact of more regulation
• Partnering/equity deals and other risk sharing
• All about appetite for risk and confidence in
  upside

9

• Thank you
• Any questions?