Public Biopharmaceutical Company Enhances Operational Effectiveness & Raises Capital
The company was in need of a true business partner. This clinical-stage biopharmaceutical company was focused on the discovery and development of radiopharmaceuticals. But they needed help raising capital to bring their products to the clinical trial stage, and, more than that, they needed proven leadership to put the company on solid and sustainable financial ground.
The financial function of the company was lacking in all major dimensions, including accounting, treasury, financial analysis and control, investor relations, and information technology. From an accounting perspective the company had significant deficiencies reported from its public accounting firm. Further, the company was undercapitalized and required a major infusion of cash to further develop its drugs.
An E.L.I. Partner was brought in as full-time CFO with the purpose of changing the financial organization and becoming fully compliant with Sarbanes-Oxley. They were to also raise $150 million in new capital. The company had several drugs in clinical trials, which required major oversight from a business, financial, and accounting perspective. It was evident that the Board, CEO, and COO needed a true business partner to drive the company in the appropriate direction.
The E.L.I. Partner addressed the company’s capital structure by working with the investment banker and management team to raise $150 million in debt. The E.L.I. Partner also oversaw the management of this very complex debt structure, including covenant compliance. Simultaneously addressing operational effectiveness, the E.L.I. Partner built the entire financial organization and recruited a highly effective team consisting of a controller, financial planning and analysis, and investor relations functions. They also established an information technology function and transformed the financial function from a group with significant deficiencies to an organization that was fully compliant with Sarbanes-Oxley A/S 5.
Over the course of two years, the E.L.I. Partner transformed the financial function of the company from a state of dysfunction into a highly effective organization, which surpassed objectives set for public company requirements. The financial team was now comprised of individuals who were true business partners to the management at all levels. The E.L.I. Partner also successfully assisted in raising and managing the requirements of $150 million in debt in a very difficult credit market.