• Situation Assessment

  • Savara is a biotechnology company focused on the research and development of innovative therapies for the treatment of serious and life-threatening rare respiratory diseases.
  • Savara’s main asset, AeroVanc, is a Phase 3 drug for the treatment of lung infections in connection with cystic fibrosis.
  • Savara engaged Locust Walk Partners to help identify opportunities to expand its pipeline in orphan respiratory and/or infection indications to increase company value and position the company for continued long-term growth and success.

  Key Activities

  Locust Walk utilized a three-person team with extensive experience evaluating assets for possible acquisition, including extensive experience in deal execution.  The firm conducted an extensive search and evaluation of orphan respiratory and/or infectious disease products currently in development that matched Savara’s existing strategy and would fit in nicely with AeroVanc’s development timelines.  The firm also initiated outreach to several potential partners.  Key activities included:

  • Leveraging both commercial and proprietary data sources to generate a list of several hundred assets of potential strategic interest to Savara, nearly all of which were not previously known.
  • Conducting diligence on key assets to further assess strategic viability as well as transactability.
  • Outreach to key companies to open negotiations for assets of interest
  • Provided deal strategy and transaction structuring for proposed acquisition targets for term sheet submissions

  Successful Outcome

  • Submission and negotiation of term sheets with four separate partners for potential asset in-license/acquisition transactions
  • Savara acquired Serendex Pharmaceuticals, adding two new orphan respiratory programs to its pipeline

  –Serendex Pharmaceuticals was sourced, originally contacted and initial offers submitted through Locust Walk’s efforts

• Eagle anticipated an upcoming revenue gap due to legacy product erosion and patent cliffs

• Eagle was interested in expanding its corporate development capabilities to include comprehensive search and evaluation, outreach and negotiation, and transaction execution support

• Locust Walk worked directly with Eagle’s CEO and management team to provide a turn-key corporate development team and support all activities

• By close of engagement (~12 months), Eagle successfully transacted on two deals supported by Locust Walk (acquisition of Acacia Pharma; equity investment and option to acquire of Enalare Therapeutics)

Key Activities

• Conducted comprehensive screening efforts to identify a short list of high-value and transactable targets in critical care and oncology

• Continuously conducted ‘background screening’ for additional opportunities in parallel to pursuit of initially identified targets

• Crafted deal theses and tailored messaging/outreach to targets in order to position Eagle as the optimal buyer, and ideally subvert competitive processes

• Supported confidential due diligence efforts, valuation and terms structuring, negotiations and discussions with target(s), and Board of Directors material creation

• Comprehensive process led to multiple active deals driven and coordinated by the Locust Walk team in collaboration with Eagle’s legal and business development counterparts

Successful Outcome

• Completion of Eagle’s $104M buy-out of Acacia Pharma providing Eagle with two high-growth and already approved hospital products

• Completion of Eagle’s equity investment and option to acquire clinical-stage company, Enalare Therapeutics; deal expands Eagle’s development pipeline with a high upside and novel respiratory stimulant to fill in future revenue gaps