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Mission BENEZECH - SIMPSON
how to say biotechnology
in Europeand around the world


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Examples:
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R&D  spin-out

  
      
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    Examples


 

5. Spinning-off a non-core R&D unit from a pharmaceutical company

Over the course of 18 months Bénézech - Simpson had been recruited by an international
pharmaceutical company to monitor new technology leads and business opportunities in the
vaccines and biologics sector . Towards the conclusion of the period the company decided
that the vaccines business was not central to future business strategies. Accordingly
Bénézech - Simpson was asked to help devise a strategy for spinning-off the vaccines R&D
business into a stand-alone R&D company.

Our original contract was based on a monthly fee, correspondng to a number of days work, with
repayment of expenses. This arrangement was maintained during the spin-off exercise, although
Karl Simpson and two pharmaceutical company executives were designated as directors of the
spin-off venture - should it succeed.

The spin-off team reviewed available technologies in-house and conducted a market survey to
determine whether other technologies needed to be added to the portfolio so as to constitute a viable
stand-alone venture. Other intellectual property was identified and access was obtained. On the
basis of the review and in-licensing activity a business plan was drawn up and initial contacts for
outside as well as parent company funding were established.

The business plan was introduced to a number of potential investors, but finally the parent company,
on the basis of the plan, decided that after all it would be appropriate to recommit funds to new vaccine
R&D and manufacture.

In one sense it might be considered that this exercie was a failure, for no spin-off occured. However,
for the client paying our bill the outcome was regarded as highly satisfactory, determining a new
strategic commitment by the Board of Directors. During the course of the spin-off exercise our fee base
was changed to account for a much greater commitment.