Get Your CVR: Backloaded Acquisitions Come Into Focus Following Metsera, 89bio Deals (Endpoints News)
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.