Non-Dilutive Financing

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  Non-Dilutive Financing: An Essential Channel in Maintaining R&D
  

  Thursday, June 27th: 1:30PM- 2:10PM

  Non-dilutive funding has emerged as a favorable mechanism for early-stage incubation, bridge financing for EGC’s, and later, for engaging in clinical development. At the later stages of company financing, grants and strategic partnerships may placate institutional investors, as well as retain and grow valuation.

  However, this space is now facing a crossroads: the most substantive giver — the federal government — has stymied this channel through budget cuts and discord between the legislative and executive branches. We are seeing more and more federally-funded studies frozen while budget mandates are handed down. Further, companies that can continue to reap federal grant dollars may be presented with punitive milestone directives.

  Still, while federal grant dollars shrink, activity among non-profit and for-profit strategic partners has only gotten stronger. Sector-wide growth in R&D spending can be directly tied to increased interest — in the earliest stages through the most established biotechs — from this financing arm. As investor strategy changes to favor companies at revenue, funding these studies through non-dilutive channels is increasingly important.

  This group of experts representing the federal government, the non-profit arm, and for-profits will explore:

  For Companies:

  • How do entities estimate the long-term interest of non-dilutive partners and funding?
  • Which international markets provide the most federal funding?
  • What do these clinical milestone directives look like?
  • How should non-dilutive financing fit into overall R&D budget?
  • How cannibalistic are for-profit partnerships?
  • What trends exist within the non-profit community? What are companies doing to attract this group?
  • Which research areas attract the most grant money? What success stories exist?

  For Investors:

  • How attractive is a company with significant non-dilutive financing behind it?
  • How does the presence of non-dilutive financing affect your equity investment in a company?
  • How does a new round of non-dilutive financing affect your exit strategy?
  • What are the expectations of a for-profit company partnership?
  • How does the acquisition of non-profit money/partnership affect holdings?
  • How difficult is it to work with federal milestone directives? What are the benefits?
  • How do international suitors of this kind affect domestic growth activity? What are the regulatory issues?