Strategy

The pharmaceutical industry’s need for innovative therapeutic approaches and new products to support its pipelines remains a key strategic driver. This need is increasingly being augmented by new diagnostic technologies that will change medical practice as they evolve.

There is, however, a widening innovation gap exacerbated by an acute shortage of funds available to the sector. Furthermore, academia and even large, well-funded research organizations that conduct excellent scientific programs can find it difficult to bridge the gap between basic research and commercial development.

HS LifeSciences' approach is following the shortest route from excellent basic research and scientific innovation through clinical development to market.

How we work

Our approach requires the identification of scientifically excellent projects with protectable intellectual property with the following properties:

• A need for focused investment (US$5 to 10MM) to cover no more than 2 years of operational time.
• The investment is dedicated to establishing the spin-out and bringing it into a position to sign a contract with a suitable deal structure with Big Pharma.
• The pharma deal enables the biotech to structure its near- and mid-term future without the need for additional rounds of VC-financing.
• In turn, the collaboration proves of longer-term benefit for the spin-out and the pharma partner by providing a platform for continuous contribution of know-how, innovation, capabilities and financial strength to the creation of new drugs.
• All activities are tailored from the onset to comply with pharma standards, coherent intellectual property strategies, life-cycle management etc.

HS LifeSciences structures the transfer of intellectual property, respective know-how and people into the spin-out so that its close association with the scientific institution is maintained for the benefit of the biotech-pharma collaboration.

We then provide the necessary management expertise to focus the company on generating the data needed to take a promising candidate forward towards the industrial alliance. The supporting basic science remains with the scientific institution.

Finally, HS LifeSciences finances the new entity via QureInvest and ensures that business development is initiated in parallel with the foundation of the company (if not before).

Risk management for an improved return on investment

Our focus is on physician-led, clinical research-based projects from first-class academic research institutions. In addition, we have a clear bias towards product candidates with manageable risks, such as antibodies and other biologicals. The HS LifeSciences business model involves early business development by identifying a pharma partner most likely to be able to bring a product to market. Thereby, we avoid the traditional incremental “value-adding” approach and the need for serial financing rounds. In addition, capital requirements remain small and the dilution of the founders‘ shares is avoided.

By entering into a partnership with a pharma partner early on, we ensure that maximum resources and capabilities are invested in the product’s development and that the necessary time is reduced to a minimum.

Benefits

For our pharma partners:
Our companies aim to:
Be great alliance partners, not FIPCOs
Create synergies from strengths of both parties
Adhere to top standards from the outset
Focus R&D efforts on patients and clinical access

For our investors:
Our companies aim to:
Save time and secure value early

Provide longer-term, high multiple returns instead of trying to force short-term low multiple exits

Incur only limited dilution of your investment as no venture capital is needed.

For our portfolio companies:
Our approach:
Provides a solid, long-term financial basis for your company and substantially limits or avoids the risk of subsequent dilution of founders’ shareholdings.

Limits the number of shareholders, operational challenges and risk factors you have to deal with.

Provides your organization with core expertise, e.g. business development, and unique industry networks.