PharmaTelevision - Paul Capital Partners: Financing and Risk Sharing

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Video title: Paul Capital Partners: Financing and Risk Sharing

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In this episode of PharmaTelevision News Review, Fintan Walton talks with Ken MacLeod, Partner at Paul Capital Partners. Filmed at BioTrinity 2010 in Newbury, UK.

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Paul Capital Partners' form of financing

Fintan Walton:

Hello and welcome to PharmaTelevision News Review here at BioTrinity in Newbury, Berkshire in the United Kingdom. On this show I have Ken MacLeod, who is with Paul Capital Partners , welcome to the show.

Ken MacLeod:

Nice to be here.

Fintan Walton:

Ken MacLeod, you've been on the show before and particularly giving us insight into not only Paul Capital Partners but also the condition of financing in the industry, so just remind us a little bit about what Paul Capital Partners is about but also in particular where you are moving yourselves in terms of financing?

Ken MacLeod:

Yes, okay I think most people will know of Paul Capital from our royalty acquisition where and that's really I guess were people mostly where we started off and at that time we imagined we primarily be buying royalties from inventors and universities but very quickly it become apparent that royalties were actually an asset that biotechnology companies had and they could use those as a means of providing financing. They can monetized that royalty stream and use that to put often more often not on their early stage pipeline. It then involved into providing financing to companies that were generating their own revenues from say their own sales and marketing activities and so what we did was we realized that a royalty is simply a sliver of sales effectively and so by buying a proportion of the revenues that a company generates themselves we can actually provide financing again for them to say acquire products, acquire the companies, expand sales forces and the like. And then most latterly we've moved in on again that's another turn of the evolutionary wheel if you want where we have recently concluded a transaction with a larger pharma company where they were seeking to share some of the risk around its portfolio development it was seeking financing for the Phase III studies for a couple of indications on a product that already been approved for one indication, so it was in a sense life cycle management and we provided the financing in sort of help them achieve that.

Fintan Walton:

So essentially what you are offering is a financing that is independent of equity financing and different to debt financing?

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Fintan Walton

Dr Fintan Walton is the Founder and CEO of PharmaVentures . After completing his doctoral research on the genetics of cell proliferation at the University of Michigan(US)and Trinity College (Dublin, Ireland), Dr Walton gained broad commercial experience in biotechnology in management positions at Bass and Celltech plc (1982-1992).

Ken MacLeod

Partner

Dr. Ken MacLeod , Ph.D. joined Paul Capital in 2004 and is responsible for sourcing, evaluating and negotiating European and Asian investment opportunities for Paul Capital Healthcare. Based in London, Dr. Ken MacLeod brings a strong operational background in the pharmaceutical and biotechnology industries where he previously held senior management positions over a 15-year career at Serono, Abbott Laboratories and Beecham Pharmaceuticals. Prior to joining Paul Capital , Dr. Ken MacLeod was a Venture Partner at Schroder Ventures Life Sciences where he was responsible for deal sourcing, evaluation and negotiation of pharmaceutical investment opportunities. Dr. Macleod earned his Ph.D. from the University of York, UK and his B.Sc. with honors in Biology from the University of Manchester, UK.

PharmaVentures

PharmaVentures is a corporate finance and transactions advisory firm that has served hundreds of clients worldwide in relation to their strategic deal making in the pharmaceutical, life science and healthcare sectors. Our key offerings include: Transactions / deal negotiations; Product / technology valuations; Deal term advice; Due diligence & expert reports; Strategy formulation; Alliance management; and Expert opinion for litigation/arbitration cases. PharmaVentures provides the global expertise to ensure our clients generate the highest possible return on investment from all their deal making activities. We have experience of all therapeutic areas and can offer advice on both product and technology commercialisation.

Paul Capital

Paul Capital was formed in 1991 as a pioneer in the secondary market, providing creative liquidity solutions to investors in private equity limited partnerships and portfolios of direct investments. Today, Paul Capital sees the world from the vantage point of an experienced investor with unique insight and the ability to build compelling solutions for institutional investors. The team has grown from an initial two to more than 90 employees, with offices in Hong Kong, London, New York, Paris, San Francisco and S"o Paulo, managing a total of more than $6.6 billion across three distinct investment platforms.