The Trouble with Spin-Offs
This article was originally published in Start Up
Executive Summary
Drug firms have created relatively few venture-financed spin-offs. The central reason--the valuation impasse between VC and pharma--is as much pscyhologically rooted as financially.
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When Esperion's ex-VP chemistry and technologies Jean-Louis Dasseux, PhD co-founded Cerenis Therapeutics in March 2005, he was doubtless inspired partly by Esperion's $1.25 billion sale to Pfizer in December 2003. So were a handful of top-notch VCs including Sofinnova Partners and HealthCap (a previous investor in Esperion), who poured in €25 million ($30.5 million) in August 2005.
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