Tesorx aspen – Locust Walk

Transaction Case Studies

Situation Assessment

TesoRx Pharma, LLC, is a pharmaceuticals company focused on rapidly developing and commercializing pharmaceutical products in specialty markets. The lead product candidate is TSX-002, the only oral unmodified testosterone replacement therapy in development.
Aspen Pharmacare (APN) is a global supplier of branded and generic pharmaceuticals with significant presence in Africa, Asia, Latin America and other ex-US / ex-EU territories.
TesoRx engaged Locust Walk Partners as its exclusive financial and strategic advisor to lead the TSX-002 partnership effort.

Key Activities

With a four-person team in multiple geographies, Locust Walk Partners led the partnership process for TSX-002, identifying and reaching out to potential partners, guiding due diligence and negotiating deal terms to maximize value for TesoRx.
Identified and conducted outreach to potential partners with appropriate strategic and geographic focus (US and worldwide).
Developed product positioning materials to emphasize key differentiators of TSX-002.
Conducted qualitative and quantitative market research and revenue forecasting in multiple regions to drive and increase deal value.
Led due diligence processes, maintained electronic data room, compiled clinical, legal and financial information to support deal execution.
Led negotiation of deal terms to maximize value for TesoRx.

Successful Outcome

TesoRx and Aspen successfully completed an exclusive license agreement for Latin America, Africa and Asia Pacific (ex-Japan, ex-China) territories.
Deal terms included upfront payments comprised of a combination of cash and equity investment totaling $15M ($5M deferred). In addition, the deal included clinical, regulatory and commercial milestones, putting the total deal value at nearly $100M not including royalties, which could reach double-digits.
Locust Walk Partners continues to serve as an advisor to TesoRx to pursue deals in the US and other territories.