Even if CVRs don’t make it into the final deal, they’re likely mentioned at some point in discussions. Jacqueline Mercier, a lawyer at Goodwin, estimated that more than 80% of all biopharma M&A transactions involve conversations around CVRs at some point. Mercier advised Vigil Neuroscience on its $470 million upfront exit to Sanofi. The deal included another $130 million in potential future payments. CVRs used to be viewed as a signal that the buyer got a heavy discount, Mercier said, but they are now considered “more achievable and more meaningful.” They’ve become more of a “package deal” with the upfronts. IDRx, developer of a gastrointestinal stromal tumor drug, got a package deal when it was acquired by GSK in January. About 85% of the deal value came via an upfront payment of $1 billion.
Read the Endpoints News article for more.