Symphony & Guilford Try Out Project Financing

Symphony attempted to re-create an off-P&L financing vehicle for biotech projects that would both pass the much tougher SEC scrutiny applied since the late 1990s and allow biotechs to avoid licensing away what could be important revenue generators. To do so, it had to create a fully independent corporate vehicle with the capacity-through an alliance with an equity-incentivized CRO--to manage its own development. But its first biotech partner, Guilford Pharmaceuticals, didn't feel Symphony had proven the financing could be completely off-P&L. Consolidating the expenses, Guilford sees the deal's value largely in the additional management resources, along with the funding, that Symphony provides a second-priority program. Symphony also has yet to prove it can make its investors money from these projects: in part because the value of late-stage programs has increased since the original off-P&L vehicles were created, Symphony could only get from Guilford a single compound, not a portfolio of projects with which to reduce its investment risk.

By Roger Longman

Just how important to development-stage biotechs is the bottom line?

Read the full article – start your free trial today!

Join thousands of industry professionals who rely on In Vivo for daily insights

  • Start your 7-day free trial
  • Explore trusted news, analysis, and insights
  • Access comprehensive global coverage
  • Enjoy instant access – no credit card required

More from Business Strategy

More from In Vivo

Rising Leaders 2025: Namrata Saroj On The Importance Of Authenticity In Ophthalmology

 

Namrata Saroj, chief business officer of Ocular Therapeutix, is highly respected in the retina community for her contributions to drug development. She talked to In Vivo about her journey in ophthalmology, leadership philosophy and the importance of authenticity in a close-knit specialty.

Johnson & Johnson MedTech: How To Scale Digital Solutions

 

J&J's EMEA head of digital solutions, Julia Fishman, talks about the hurdles in scaling digital innovation and what’s up next on J&J’s innovation road map. Robot-assisted surgery pioneer Ivo Broeders gives his perspective on the difficulties in clinical adoption.

Rising Leaders 2025: Emma Hodcroft On Taking Initiative When “Plan A” Falls Short

 

Emma Hodcroft, co-founder of Pathoplexus and a key Nextstrain contributor, stresses the importance of career flexibility for young scientists. She urges early-stage researchers to embrace curiosity, using her unconventional path as an example of how curiosity can lead to impactful success.