Manufacturing Due Diligence

Verta Life Sciences’ have conducted due diligence reviews on behalf of clients who where undertaking activities such as:

  • Mergers and acquisitions
  • Manufacturing strategy reviews
  • Sourcing strategies and reviews
  • Manufacturing site sale and purchase
  • Purchase products

We have experience conducting due diligence reviews of manufacturing operations, sites and products in North and South America, Asia, Europe, and Africa.

Based on the outcome of the reviews we help clients understand the true value propositions, identify any risks that might be associated with a potential deal, and develop mitigation actions to minimize these risks where possible.

Topics typically covered during due diligence reviews include:

  • Corporate structure and overview
  • Management structure and relationship with customers
  • Staff retention and knowledge management
  • Facility tours
  • Manufacturing process capabilities and capacity
  • Logistics and distribution
  • Regulatory compliance history
  • Quality assurance and compliance
  • Health, safety, environment compliance
  • Engineering technology and capital management
  • Continuous improvement
  • Process development
  • New product and process development, status
  • New Product introduction projects, status
  • Customer contracts
  • Financial status
MERGERS & ACQUISITIONS Case Study – Product
Issue:

A small pharmaceutical company wanted help purchasing a legacy product from a large pharmaceutical company.

Objective:

Help client acquire product at appropriate value in reasonable time period while minimizing.

Deliverable:
  • Assisted client reach agreement with the selling company at an appropriate value.
  • Provided business development support working with legal group to draft term sheet, asset purchase agreement, supply agreement, trademark agreements, etc. and negotiate to protect interests.
  • Post signing supported the integration of the product into receiving companies supply chain systems, warehouses and commercial channels as well as facilitated quality agreements and required artwork and regulatory changes.
  • Product was acquired in 4 months and has begun generating sales for new company with no disruption from supply from both CMO and previous product owner’s supply sites.
Issue:

An API Manufacturing business’ existing order book has suffered significant erosion and the companies investors were concerned about their long term viability.

Objective:

The client wished to understand the potential opportunities to capitalize on companies manufacturing expertise and recommend strategies to maximizing shareholder value.

Deliverable:

A strategic review identifying manufacturing and supply opportunities that would allow the company to capitalize on their strengths, and identified the risks and sensitivities that might restrict their ability to maximize shareholder value.

  • Review covered all aspects of the existing manufacturing business and assessed the risk of manufacture and supply from the manufacturing site
  • Meetings with the companies leadership team and subject matter experts were undertaken to understand their current manufacture and supply
  • operations, the demand for their existing products, the installed manufacturing capacity, the companies technical competency, the strength of their personnel, the installed manufacturing processes, the quality systems in place, their regulatory compliance, supply pricing and profitability.
  • Recommendation were made on restructuring the operations and on business opportunities
  • The Leadership team’s competencies were assed and changes to team were recommended
Manufacturing Operations Due Dilligence

Verta Life Sciences has extensive experience with the successful sale and purchase of manufacturing operations. We have helped clients position manufacturing sites for sale and decide what if any technology they should leave at the site to make it attractive to potential purchasers.

Verta Life Sciences helps clients considering the purchase of a pharmaceutical or biotech product from another company, or the sale of one of their products to others. We help position the manufacturing of clients’ assets to best support its successful commercialization.

We work with clients staff to ensure successful transition of operations to new owners.

If you are considering the acquisition of the rights to a new molecule or marketed product and want to know how to best support it’s long term manufacture then Verta Life Sciences can help.

  • Transitional supply contracts allowing clients to transfer production in the midterm to alternative suppliers whilst giving the prospective purchaser relief with their cash flow during the transition period.
  • Long term supply contracts.

We help manage the risks during the transaction process.

We work with clients to engage potential purchasers and manage the sale process to a successful outcome.

In addition, we have assisted Pharmaceutical companies during due diligence exercises, both in the collation and establishment of data rooms and in the review of due diligence data on behalf of prospective purchasers.

We have conducted due diligence audits of manufacturing facilities and processes to identify compliance risks. We then work with the client to establish and implement risk-mitigating action plans.