Recombinant
Capital (“Recap”) is a San
Francisco-based consulting firm,
founded in 1988, specializing in
biotechnology alliances,
alliance revenues, and company
capitalization. Recap has
studied the biotechnology
industry from its birth to the
present and has built large and
detailed biotechnology business
intelligence databases,
including our Alliances,
Revenues, and Valuations
databases, available at our two
web sites,
Recap.com and
rDNA.com.
Bio-Pharmaceutical Alliances:
The
Recap Alliances database
currently contains 23,786
fully-searchable high-level
summaries of biotech alliances
commenced since 1973. Recap
analysts mine several industry
news sources each day, recording
each biomedical alliance,
together with the source
document. A multitude of
specific characteristics for
each alliance are tracked, such
as: the alliance date and dates
of revision, alliance type
(e.g., license, sublicense,
acquisition, supply, etc.),
product type/technology (e.g.,
synthetics, monoclonals,
devices, etc.), stage of
development, product disease
categories, payment amounts and
types (upfront, equity, R&D,
milestone, and royalty amounts,
where available), the types of
parties involved (e.g., Biotech,
Pharma, University).
We later go
through the public documents of
all companies that file reports
with the U.S. Securities and
Exchange Commission (“SEC”) to
acquire any contracts and other
information pertinent to the
alliance. The birth in the
mid-1990’s of the SEC’s
electronic “EDGAR” database of
filed documents revolutionized
this information flow to the
public. Recap supplements
EDGAR-derived contracts and
reports with our extensive
collection of “pre-EDGAR”
documents and reports, scanned
into pdf files and attached to
the relevant alliance. In
addition, Recap makes numerous
requests to the SEC under the
Freedom of Information Act (“FOIA”)
to obtain unredacted copies of
contracts for which important
details have been blanked out or
“redacted” by the filing
company. Redaction is a standard
practice used by companies to
protect the financial and other
important details of an
alliance. After a certain amount
of time, however, these details
become available to the public.
Recap has obtained a significant
number of fully unredacted
contracts in this manner.
Recap creates
detailed analyses for selected
alliances, distilling the
essential information from the
contracts and amendments of an
alliance into a standard,
condensed format. One hundred
pages of contract will typically
yield a 10-12 page Analysis. The
Analysis provides an overview of
the scope and history of the
alliance, an outline of payments
(upfront, equity, R&D,
milestones, royalties, transfer
prices, etc.); R&D,
manufacturing, and
commercialization
responsibilities; the license
grant, field of use, and
territory; royalty offsets and
3rd party royalty
responsibilities; co-promotion
and other options; alliance
management; and equity
provisions. Importantly, the
content goes in defined
locations. Thus, the royalty
information and offsets will
always be found in the same
place in each Analysis document.
Our analysts then
supplement the Analysis with any
subsequently-released
information within the SEC-filed
reports of the alliance parties.
In this manner, the Analysis
will often record the actual
payment of milestones and the
milestone amounts, the pricing
of equity investments, and
occasionally the
back-calculation of royalty
rates.
Biotech Company
Valuations:
Our
Valuations Histories Database
stores financing rounds and
step-wise valuations for 676
biotech companies in tabular and
graphic form. These valuation
histories are based on primary
share issuance from the date of
founding until the most recent
equity financing or other share
issuance. The graphic display
also includes a real-time quote
of the current market cap of the
company, allowing the most
up-to-date look at the step-ups
(or step-downs) in a company’s
valuation from founding until
the present.
Alliance
Revenues:
Recap’s Revenues database and
Revenue Reports show a breakdown
of alliance revenues received or
paid by a particular company.
This data is obtained from
SEC-filed reports and is tracked
on a quarterly basis. The
Revenues database is available
through the rdna.com
subscription site and may be
viewed by Biotech Company
(recipient) or by the Payor
company. Alliance revenue may
also be displayed in aggregate
by therapeutic sector (e.g.,
Cancer, Cardiovascular, CNS,
etc.).
Analyst Notebook:
In
addition to our subscription and
consulting services, Recap
provides a collection of
material from our consultants in
the Analysts’ Notebook section
of
www.recap.com, including a
list of recent deals, a
collection of “Deal Snapshots”,
Alliance Trends slides (average
and median deal terms for
various types of alliances), a
selection of key/flagship deals,
articles from Signals Magazine
(see below) grouped by topic,
and a collection of recent slide
presentations by our analysts.
Signals Magazine:
Recap publishes the online
magazine, Signals, providing
analysis of current trends and
new developments affecting the
biopharmaceutical industry.
Signals’ main areas of emphasis
are alliances, financial trends,
technology developments, and
profiles of interesting people
and companies. See
www.signalsmag.com for the
most recent issue (featuring
reverse mergers)
