Due Diligence Best Practices from Pharma Leaders
Through due diligence, investors and pharma companies take a closer look at their potential partner, the asset, and the deal itself to validate claims and evaluate risks. With many millions of dollars riding on the success of licensing and acquisition activities, a deal gone wrong can mean significant debt and wasted resources.
This eBook gathers best practices from top pharma companies and offers actionable steps for improving due diligence at life science companies of all sizes.
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Create a structured evaluation process
There are a lot of moving parts involved in due diligence, a well-defined process and structure play a critical role in maintaining efficiency and impact. An effective way to structure the due diligence process, as explained in this Inova webinar, is to use themes and subthemes for each functional area to guide their experts.
Each theme is rated against an internal standard. For example, if the partner says the asset is Phase II ready, the experts will evaluate whether it fits their company’s standard for a Phase II ready asset.
Evaluation of Data Package Content and Quality
Significant Strength
Significantly exceeds internal standard
Better internal criteria: a potential benchmark
Moderate Strength
Exceeds internal standard
Somewhat better than internal criteria
Neutral
Meets internal standard
Consistent with internal criteria
Moderate Gap
Below internal standard
Somewhat below internal criteria
Significant Gap
Significantly below internal standard
Markedly below internal criteria



8 Best Practices from Top Pharma companies
Kick off the due diligence together.
- Filter & prioritize information requests.
- Document the history of your diligence.