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Article: Staggered Biotech Buyouts Suit Risks Of Both Parties.
- Article from:
- BIOWORLD Today
- Article date:
- November 3, 2009
CopyrightCOPYRIGHT 2009 A Thomson Healthcare Company. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Staff Writer
In a tight financing environment, companies look for creative solutions to attract investors.
At the same time, those shelling out the dough want some assurance of success, and management's faith in a product or platform is simply not good enough.
That's why some biotech companies are willing to forgo the traditional private or public stock offerings in favor of a uniquely structured merger. One in which the purchaser makes an up-front payment relative to current value, but offers more value downstream once milestones are achieved.
The structure made sense for VioQuest Pharmaceuticals Inc., of Monmouth Junction, N.J., ...