Gordian Group was engaged by the Company to advise it in connection with its financial and recapitalization alternatives, and the raising of bridge financing.
Case Study
Undisclosed Pharmaceutical Company
CLIENT: The Company
Business Profiles
Private Equity / Entrepreneur RepresentationsSituation
A private pharmaceutical company (the “Company”) with a pipeline of development stage drugs purchased a commercial vaccine from a major pharmaceutical company in order to generate revenue and distinguish itself from entirely pre-revenue biotech startups. Difficulty in establishing operations and sales and delays in the transfer of marketing rights resulted in revenues only a fraction of those contemplated at the time of the purchase, leaving the company unable to pay the remaining purchase price installments.
Engagement
Gordian Group was engaged to advise the Company on its assessment of the financial and recapitalization alternatives available, possible restructurings of its contracts, and negotiations surrounding regulatory and licensing issues.
Over the next several months, Gordian reviewed the company operating plan, developed views and financial alternatives for presentation to the Board of Directors, and advised the Company on discussions with its creditors, suppliers, and the previous owner of its commercial vaccine.
Outcome
A new round of financing was successfully raised to fund operations and bring certain development stage drugs to market. Gordian provided thoughts on valuation in connection with the financing. The increased liquidity allowed management to continue to fund operations.