Situation Assessment

• Regenacy was spun-out from Acetylon Pharmaceuticals in connection with Celgene’s acquisition of Acetylon in late-2016​
• Regenacy’s lead program is a first-in-class, Phase II-ready HDAC6 inhibitor, ricolinostat, with safety data from over 250 patients​
• Regenacy was seeking to advance ricolinostat through Phase II clinical trials for diabetic peripheral neuropathy​
• To maximize optionality, competitive pressure, and leverage with interested parties, Locust Walk and Regenacy determined a multi-track process would increase the likelihood of the best outcome​
• As a result, Locust Walk was engaged to solicit investors, global strategics, and Japanese regional partners

Key Activities

• Prepared high-impact marketing materials (teasers, management presentations, and a private placement memorandum) to emphasize ricolinostat’s disease modifying potential to treat diabetic peripheral neuropathy (DPN) and additional peripheral neuropathies ​
• Conducted a broad, targeted outreach campaign to hundreds of global and regional life-science focused VCs, family offices/high net worth individuals, corporate VCs, and institutional investors ​
• Conducted a comprehensive outreach campaign to over 50 global strategic partners and 28 Japanese regional partners​
• Led numerous companies and investors through a confidential due diligence process and facilitated discussions with several interested parties, generating multiple term sheets for both financing and strategic alternatives and confirming strategic interest post-Phase II trial​
• Conducted financial and precedent transaction analysis to assist in the company valuation​
• Provided guidance on economic and non-economic terms and final agreement negotiations​
• Worked in collaboration with legal teams to drive financing to close

Successful Outcome

• Regenacy successfully raised an equity financing round ($30M) led by Cobro Ventures and Taiwania Capital with participation from 3E Bioventures Capital, Yonghua International, Viva Biotech, and TA YA Ventures ​
• Funding will be used to bring ricolinostat through Phase II trials in DPN and exploratory studies in chemotherapy inducted peripheral neuropathy​
• In a volatile funding environment, Locust Walk was integral to guiding investors to a successful closing of the financing