Due Diligence

Due Diligence Services by DelveInsight: Empowering Confident Strategic Decisions

Uncover the True Value of Pharmaceutical and Biotech Assets Before You Invest

Case Study Overview

In the fast-paced world of pharmaceuticals and biotechnology, every investment decision carries significant risk and opportunity. DelveInsight’s Due Diligence services empower clients ranging from global pharma leaders to emerging biotech innovators with deep, evidence-based insights into asset valuation, market potential, competitive landscape, and regulatory positioning. This case study explores how DelveInsight’s robust Due Diligence framework helped a leading pharmaceutical firm make an informed strategic acquisition decision by validating the scientific, clinical, and commercial potential of a target company’s portfolio.

Client Challenge

The client, a top-tier pharmaceutical company, was evaluating a mid-stage biotech firm with a promising oncology pipeline for potential acquisition. Despite the target’s claims of breakthrough efficacy and market potential, the client needed a comprehensive, unbiased assessment to confirm the true value of the asset and identify possible risks before proceeding.

The key challenges included:

• Limited access to transparent clinical data and real-world performance metrics.
• The need to assess competitive differentiation within a crowded oncology market.
• Evaluating the commercial viability and projected ROI based on market trends and regulatory dynamics.
• Identifying any hidden red flags related to intellectual property, clinical setbacks, or manufacturing feasibility.

1. Objective

A mid-sized pharmaceutical company headquartered in Germany sought to enter into a manufacturing partnership for commercial-scale production of its novel formulations. The client’s primary goal was to obtain high confidence in the reliability, operational capability, and strategic fit of the selected manufacturing partner before closing the deal. 

2. Problem Statement

Although the partner company appeared suitable on paper, the client faced several risks: uncertainty around the manufacturing partner’s actual site and equipment readiness; potential gaps in intellectual property protection; financial stability concerns; and limited reference data to validate the partner’s credibility. Engaging in a multi-year manufacturing agreement without a clear independent assessment exposed the client to operational, regulatory, and commercial risks. 

3. Our Methodology

To address these risks, DelveInsight deployed a rigorous multi-dimensional due diligence process:

• Manufacturing Capability Assessment: On-site and equipment analysis to verify facility readiness, GMP compliance, capacity scale-up potential
• Financial Assessment: Examination of quarterly and annual financial statements of the partner company to gauge liquidity, profitability, and risk exposure.
• Intellectual Property (IP) Assessment: Patent portfolio review and freedom-to-operate analysis to ensure the partner’s IP strength and alignment with the client’s formulations.
• Primary Research & Reference Checks: Interviews and validation with third-party sources and references to verify the partner’s operational history, reputation, and reliability.  These combined assessments provided a holistic view of the partner’s strengths, limitations, and strategic fit.

4. Results

As a result of this structured due diligence, the client gained:

• A detailed assessment of the partner’s manufacturing capabilities and operational stabilityhighlighting both areas of strength and key improvement opportunities.
• A clear analysis of the partner’s intellectual property position, giving the client insight into potential IP risks and alignment with future product pipeline strategy.
• Verified reference data supporting the partner’s credibility, enabling the client to proceed with greater confidence.
• A set of analyst comments and recommendations around the suitability of the partnership, enabling informed decision-making and negotiation positioning. 

Why Choose DelveInsight for Due Diligence?

• Deep domain expertise across multiple therapeutic indications.
• Access to comprehensive proprietary databases and clinical intelligence platforms.
• A multidisciplinary team blending scientific, commercial, and strategic insights.
• Proven track record in supporting M&A, Out-Licensing, and portfolio expansion decisions.

Connect with our consulting team for tailored strategic insights @ Healthcare Consulting Services