Life Sciences Outlook 2012 Dutch biotech companies ... - NautaDutilh

4. Exit
strategy.
The last stage in the entrepreneurial life cycle of a
biotech company is the exit phase, in which the
VCs and/or management seek to liquidate their
investment and the company in its present, investordriven
form has served its function. Historically, two
types of exit were typical for biotech companies,
an IPO or a sale of the company or its prize assets.
Clearly, an IPO in today’s market is very difficult and
is far from certain to produce the desired return.
Furthermore, the closely-knit ecosystem of which
biotech companies are currently part is geared
towards matching them with the right strategic
partner at the right time and price. For these reasons,
the preferred exit route has shifted from an IPO to a
sale to a Big Pharma or similar company.
While the exit is the final step in the company’s
development, it may and usually does occur before
a new drug or medical technology produced by the
company has entered the market.
Life Sciences Outlook 2012 Dutch biotech companies: from start-up to exit
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