Our business model has a proven track record for success, as AskBio has successfully spun out Bamboo Therapeutics (sold to Pfizer) and Chatham Therapeutics (sold to Baxter, now Shire) using a minimally dilutive financing strategy.
AskBio maintains a corporate position as an IP holding company due to the expansive platform nature of its technology. It also fulfills an important project incubation function whereby it internally develops specific drug candidates through a feasibility phase of development. Upon management’s determination that a program adequately supports a therapeutic solution and generates sufficient commercial interest, AskBio may incorporate a new therapeutic-focused subsidiary special purpose entity (SPE). These incubated SPE’s are initiated with field-specific licenses of AskBio’s platform vector and manufacturing technologies from the holding company.
In consideration for providing the project incubation development R&D and comprehensive technology portfolio to the SPE, AskBio maintains a preferred equity ownership stake. Through this Parent and SPE strategy, AskBio continues to:
- Leverage its technology across multiple therapeutic areas, without any one area becoming rate-limiting for the entire technology portfolio
- Retain short- and intermediate-term license-based revenues, as well as a long-term equity stake in the SPE’s
- Maintain sustained technology growth through patent “improvement” rights granted back to the holding company under the license
This model allows scientists who have developed therapeutics to have a significant ownership in the projects that they initiated and to share equitably in the financial returns.
This business model has a proven track record for success as AskBio has successfully spun out two SPE’s (Bamboo Therapeutics and Chatham Therapeutics) and sold them to Big Pharma partners, using a minimally dilutive financing strategy. Learn more about our successful partnerships with pharmaceutical and medical device companies, including Medtronic, Baxter and Pfizer, on our Partnerships page.