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Thursday, September 17, 2020

- CDT
Development Stage Strategic Investments with Acquisition Rights
Aleida Conners
Aleida Conners
Fredrikson & Byron, Attorney
Jeff Steinle
Jeff Steinle
Fredrikson & Byron, Attorney

While early stage healthcare companies may seek resources from established healthcare companies, they often want to remain independent while they pursue their healthcare-related vision and build value. 

Established healthcare companies expand and enhance existing product portfolios by acquiring early-stage technologies. They also want certainty that, if they help nurture an early-stage company, they will be able to acquire it once it is ready to exit without risk of being outbid by a competitor. 

To balance these issues, companies often use a structured acquisition, in which the established healthcare company invests in the early-stage company, often obtains some degree of commercial rights and negotiates an option to acquire the company at a pre-agreed price. Join attorneys from Fredrikson & Byron, P.A. as they explain the rationale for, structure of, and pros and cons of a structured acquisition.