Road to Value BV
Drie Gebroeders 15
2342 CL Oegstgeest
The Netherlands

OrgaNext Research

Situation

Life Science ventures are a special class of investments. Often driven by early stage technology, there is usually a long and uncertain path to bring the product to market. In the case of OrgaNext Research, the situation is different in the sense that the product is a redevelopment of existing compounds destined for a new indication with an urgent unmet medical need. Combined with experienced management and a flexible financing approach, risks have been reduced significantly, while maintaining the attractive upside associated with successful life science products. The objective is to finance the development of OrgaNext Research by means of informal investments, venture capital investments, licenses with big pharma and grants provided by governments and patient organizations in several rounds and in a number of geographies.

Task

Road to Value was engaged at an early stage to help shape the business plan and funding strategy, to attract investors and to structure funding deals, across the lifespan of the company.

Action

- Developed financial model (market model, development budget, operational projections, liquidity, valuation, IRR analysis)
- Wrote information memoranda and teasers
- Developed funding strategy, investor profiling and shortlisting
- Negotiated terms sheet with life sciences seed fund
- Sourced informal investors
- Assisted in the deal making with informal investors
- Preparing material and approaching investors for a seed and A-round financing
- Assisted in securing Innovation Credit (Dutch government soft loan)

Result

OrgaNext Research BV was successful in raising a seed round in 2011 with a group of informal investors. Furthermore, pre clinical proof was generated, providing backup to the hypotheses, global key opinion leaders embraced the proposition of OrgaNext , and regulatory strategies were confirmed by the leading authorities. Currently we are initiating an A round financing, which can take OrgaNext Research a long way towards a successful phase II trial.