Leaders in Pharmaceutical Business Intelligence (LPBI) Group

One Possible Strategy for an Acquisition is via a Special Purpose Acquisition Company (SPAC)

Authors: Joel Shertok, PhD, Board Member and Aviva Lev-Ari, PhD, RN, Founder, LPBI Group, 1.0 & 2.0

UPDATED ON 3/18/2021

That seems to be confirmed by a recent study by Michael Klausner and Emily Ruan of Stanford University and Michael Ohlrogge of New York University. The authors look at blank-cheque firms that made acquisitions between January 2019 and June 2020. They find that, in 25% of cases, the sponsor’s payout exceeded 12% of post-merger equity, compared with a median stake of 7.7%.

They also conclude that some spacs deliver far worse returns for investors than others: companies that went public through the spac route fell in value by an average of 3% after three months, 12% after six months and by a third after 12 months. They lagged behind the wider market and even further behind an index of firms that listed via ipo.

However, about half the sample is made up of “high-quality” spacs, defined as those run by former Fortune 500 bosses or set up by large private-equity firms. These perform much better, outperforming ipos and the wider market over six months (though not over 12).

SOURCES

https://www.economist.com/finance-and-economics/2021/02/16/why-spacs-are-wall-streets-latest-craze

The SPAC Bubble May Burst—and Not a Day Too Soon

A Sober Look at SPACs

57 Pages Posted: 16 Nov 2020 Last revised: 6 Mar 2021

Date Written: October 28, 2020

Keywords: SPAC, Securities Law

Suggested Citation:

UPDATED on 3/17/2021

Paul R. Milgrom

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2020

Born: 20 April 1948, Detroit, MI, USA

Affiliation at the time of the award: Stanford University, Stanford, CA, USA

Prize motivation: “for improvements to auction theory and inventions of new auction formats.”

Prize share: 1/2

To cite this section
MLA style: Paul R. Milgrom – Facts – 2020. NobelPrize.org. Nobel Media AB 2021. Thu. 18 Mar 2021. <https://www.nobelprize.org/prizes/economics/2020/milgrom/facts/>

LECTURE by Paul R. Milgrom

https://www.nobelprize.org/prizes/economic-sciences/2020/milgrom/lecture/

To cite this section
MLA style: Robert B. Wilson – Interview. NobelPrize.org. Nobel Media AB 2021. Wed. 17 Mar 2021. <https://www.nobelprize.org/prizes/economic-sciences/2020/wilson/interview/>

Robert B. Wilson

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2020

Born: 16 May 1937, Geneva, NE, USA

Affiliation at the time of the award: Stanford University, Stanford, CA, USA

Prize motivation: “for improvements to auction theory and inventions of new auction formats.”

Prize share: 1/2

To cite this section
MLA style: Robert B. Wilson – Facts – 2020. NobelPrize.org. Nobel Media AB 2021. Thu. 18 Mar 2021. <https://www.nobelprize.org/prizes/economics/2020/wilson/facts/>

UPDATED on 2/5/2021

SPAC growth has multiplied faster than the COVID-19 virus contagion.  In fact, the pandemic frightened many companies who were contemplating an IPO in 2020.  A SPAC is a safer way to get to an IPO during market and economic hardships.  Think of it as a merger behind closed doors rather than under the magnifying glass of the SEC, investors, creditors, etc.  70% of all money raised through public offerings in January 2021 were SPACs. Per the graph, 2020 saw $82B poured into SPACs.  The single month of January 2021 saw more than 96 SPACs raise $20B.  The US is now seeing 5 new SPACs a day!

“Many of the 287 SPACs currently hunting for targets are looking for deals in hot sectors such as technology or electric vehicles, according to figures from data provider SPAC Research. Last week, six new SPACs launched: Queen’s Gambit Growth Capital —a company led entirely by women that shares a name with an opening sequence in chess and a popular show on Netflix —Legato Merger, Gores Metropoulos II, Oyster Enterprises Acquisition, TZP Strategies Acquisition and FoxWayne Enterprises Acquisition. Eight more went public on Friday”. Amirth Ramkuma / Wall Street Journal

UPDATED on 2/2/2021

Blank Check Companies’ Hunt For Innovative Medtech Start-Ups To Heat Up Further, Experts Predict

Joseph Hernandez, founder and CEO of Blue Water Acquisition Corp., a SPAC that is currently looking for an acquisition target in the health care space, also expects a lot more deal flow in medtech, particularly in artificial intelligence, telemedicine, cardiology, joint replacements, diagnostics and genomics.

JOSEPH HERNANDEZ, FOUNDER AND CEO, Blue Water Acquisition Corp.

“Medtechs are often undervalued in the market, but I think if you look at their risk profile, they are usually less risky than biotech companies because you usually have a product,” Hernandez told Medtech Insight.

Blue Water Acquisition announced on 15 December it raised $50m by offering 5 million units at $10. Each unit consists of one share of common stock and one warrant exercisable at $11.50. The underwriter, Maxime Group, exercised its over-allotment option, resulting in $57.5m raised.

“We have been a free-trading company for a little bit over 30 days and I can tell you we’ve seen a large number of deals – in excess of 40 deals we’ve looked at [at] this point – and continue to get deal flow here on a daily basis,” Hernandez said. Though he feels that the smaller size of the SPAC, which puts it at an acquisition target range of roughly $75-$240m, puts it in the “sweet spot.”

“There’s not a lot of players in this acquisition spectrum,” he said. The majority of deals have been on the larger side, where there are more SPACs competing for the same private companies.

Karim Anani, EY Americas Transactions Accounting Advisory Leader and EY Capital Markets Partner advising companies on strategic transactions, also expects the SPACs craze to continue ramping up in 2021.

“We’re also starting to see increased deal sizes, so the valuations and the size of the companies that SPACs are looking to merge with in the medtech space are increasing as we progress through 2020 and go into 2021,” Anani told Medtech Insight. “The amount of capital, if you consider general SPACs and what is identified for this industry, is probably $10-$14bn – it just depends how you want to cut the data.”

SPACs Bubble?

Goldman Sachs Group Inc. CEO David Solomon, among others, have expressed concerns about the sustainability of SPACs. Solomon warned in the company’s call in January that the flurry of SPACs is not sustainable in the medium-term. Goldman Sachs is among the banks benefitting from the boom.

Grossman also foresees that there will be “slowing of the pace,” noting that there are about 250 SPACs out there.

“Once it gets to 300 or 400, it starts to get crowded in each of the different spaces and there’s only a limited number of opportunities for public-ready companies,” he said. Nevertheless, he believes that 2021 will be an interesting year.

“I think you’re going to see a lot of innovative companies go public, especially in medtech.”

SOURCE

https://medtech.pharmaintelligence.informa.com/MT143415/Blank-Check-Companies-Hunt-For-Innovative-Medtech-StartUps-To-Heat-Up-Further-Experts-Predict?vid=Pharma&processId=bbaaf314-e3b9-4ed1-8631-b85f7773183b

1/20/2021

Overview of Leaders in Pharmaceutical Business Intelligence (LPBI)

ACQUISITION STRATEGIES AND INVESTMENT NEEDS

LPBI was founded by Dr Aviva Lev-Ari, RN, PhD in 2012 and developed since then to Present.

During the period 2012-2020 – LPBI developed a vast Intellectual Property portfolio of several IP Assets (LPBI 1.0):

• 2MM e-Readers,
• 6000 Journal articles,
• 18 e-Books in Medicine,
• 100 e-Proceedings & Tweet Collections and
• 5000 Biological images

Starting in 2021, LPBI will evolve into a new entity building on LPBI 1.0 IP Portfolio, designated LPBI 2.0:

See below links for more information.

LPBI 2.0 is pursuing:

1. Medical Text Analysis NLP, ML-AI on our content created 2012-2020
2. Content Monetization on Blockchain: existing digital products, and ML products

LPBI is seeking potential acquirers in both Israel and the United States, as LPBI 2.0 requires both an acquirer and investor/investment to realize its strategies. This will involve the transfer of ownership of an IP Portfolio consisting of over 3.3 Gigabytes of cloud-based English text and associated biological images.

The projected acquisition will also entail new management of the IP Portfolio consisting of both 1 and 2 strategies, above, along with a team of ten Experts in Medicine and Life Sciences.

We feel that realizing these activities will require either:

• An existing company able to execute an M&A strategy, or
• An investor/acquirer to convert LPBI to a new ownership, assuming control of the IP and the LPBI Team.

Investment will be necessary to support these strategies:

A. The conversion of our content via Natural Language Processing (NLP) and Machine Learning (ML) /Artificial Intelligence (AI) into the corresponding graphics along with its interpretation by experts.

• Scaling up to all contents of LPBI 1.0 IP Portfolio: Journal articles, books, e-Proceedings, Biological Images

B. The implementation of the Blockchain Transaction Network, necessary for secure monetization of LPBI existing content:

• Journal articles, books, e-Proceedings, Biological Images
• New products generated by NLP (hyper-graphs and expert interpretation),
• B2C – a Digital Store in a Healthcare Digital Marketplace, and
• B2B – installations in Big Pharma and Healthcare Insurers involve implementation of the customized design of a Blockchain transaction IT infrastructure:

These include IT design, which represents the first ever combined IT infrastructure for NLP and Blockchain transaction network:

• Recommendation Engine,
• Smart Contracts,
• Permissions,
• Immutable ledger

C. Addition operations requiring investment:

• Original data migration from an Authoring cloud to a Transaction cloud.
• Hosting a Digital Store in an existing Healthcare Digital Marketplace for B2C
• B2B special installations and development of consultancy services
• Content promotion campaigns

One possible strategy for an acquisition is via a Special Purpose Acquisition Company (SPAC)

• Discussion of this strategy: Date TBD

Additional Background Sources:

LPBI 1.0:

https://pharmaceuticalintelligence.com/2019-vista/

LPBI 2.0:

https://pharmaceuticalintelligence.com/vision/

Projections

https://pharmaceuticalintelligence.com/vision/pharmaceuticalintelligence-com-journal-projecting-the-annual-rate-of-article-views/

Portfolio of 10 Intellectual Property Asset Classes

https://pharmaceuticalintelligence.com/2019-vista/

Six Strategies, 2021-2025

https://pharmaceuticalintelligence.com/vision/

The Opportunities Map

https://pharmaceuticalintelligence.com/2019-vista/opportunities-map-in-the-acquisition-arena/

The Team

https://pharmaceuticalintelligence.com/knowledge-portals-system-kps/