US Major Law Firms and Rating Agencies Collaborate for Practical Due Diligence on Ellison Acquisition
[Asia Economy Reporter Hyungsoo Park] Power plant company BDIA is pursuing a new business focused on drug development.
BDIA announced on the 4th that it has started due diligence for final verification with the U.S. drug development company Ellison Pharmaceuticals. It has been 25 days since signing the Memorandum of Agreement (MOA) related to the acquisition.
The due diligence team, composed of major domestic and international law firms and evaluation agencies, will visit Ellison's headquarters in New Jersey, USA, by the 8th to conduct verification work for the final acquisition.
The due diligence will focus on the valuation of new drugs developed by Ellison. The evaluation targets include 'Glufosamide,' a phase 3 clinical trial pancreatic cancer second-line treatment drug, and a brain cancer treatment drug currently applying for phase 3 clinical trial approval. Drugs under phase 2 clinical trials, such as a lung cancer treatment and a pediatric osteosarcoma treatment, are also included in the verification targets.
Along with the valuation of new drugs, BDIA is considering the patent assetization held by Ellison. Ellison holds more than 50 international patents related to cancer treatments. BDIA plans to focus on accurately evaluating Ellison's technology value through specialized evaluation agencies regarding these patents.
A BDIA official said, "Cooley, recognized as the world's top global law firm in the bio field, and TurckBio, a global bio consulting company specializing in new drugs, are participating in the due diligence," adding, "We will conduct professional technical verification as well as objective and highly reliable value evaluation."
He continued, "In the Ellison evaluation report conducted by another institution, 'Glufosamide' was evaluated as a drug that can successfully complete clinical trials if only raw materials and additional clinical trial funding are secured."
Most companies are facing difficulties in on-site due diligence for acquisitions due to the novel coronavirus (COVID-19). However, BDIA is proceeding with the planned acquisition schedule without disruption. BDIA's management decided to proceed with the acquisition and promote new business as soon as objective valuation results come out through due diligence.
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