In Law360, Daniel Forman and Hannah England Discuss Life Sciences Capital Markets Alternatives in Slumping IPO Market

In The News
April 3, 2023

In a Law360 article, capital markets partner Daniel Forman and IP transactions partner Hannah England (Freeman) discussed funding alternatives for life sciences companies in a slumping initial public offering market and findings from a Ropes & Gray Healthcare and Life Sciences Capital Markets Monitor analysis report.

To satisfy their funding needs, life sciences companies are pursuing options that include licensing agreements, royalty monetization transactions, debt financing, private placements or being acquired. Companies are also considering unconventional means of going public, such as through a reverse merger, or simple cost-cutting.

Private funding is another option. Daniel explains that private companies are often willing to renegotiate financial terms with existing investors and founders and extend prior funding agreements rather than seek out new investors in an uncertain market.

Companies are also exploring ways to monetize their assets without diluting their stock, such as through licensing collaborations. For example, Hannah recently advised publicly traded Dutch gene therapy firm UniQure N.V. in a licensing agreement in which UniQure acquired rights to develop and commercialize a drug designed to a rare form of ALS, or amyotrophic lateral sclerosis.