Value in VDRs: Before, During and After the Deal

These results confirmed our belief that the industry is aware of VDR technology and is using this technology to facilitate deals. But the next question is, are they getting the full value of their technology purchase?”


18 October 2010

The looming pressure to get deals done faster and more efficiently has impacted the way business development and licensing (BD&L) professionals in the biopharma industry handle their business. We recently conducted a deal activity survey with a group of BD&L professionals – in which more than 70% of respondents indicated they use a virtual data room (VDR) to manage the due diligence process.

These results confirmed our belief that the industry is aware of VDR technology and is using this technology to facilitate deals. But the next question is, are they getting the full value of their technology purchase?”

With that question in mind, we recently hosted an informative webcast titled: “Value in VDRs: Before, During and After the Deal”. The intention of the webcast was to show BD&L professionals that there are a lot more uses for a VDR outside of simply conducting deals. In a time where companies are tightening their belts on spending, it’s become abundantly clear that organizations want to get the most out of the money they do spend. Alison Shurell, VP of life sciences product marketing at Intralinks, kicked off the webcast by discussing the upward trend in global licensing in Q2 2010 and also noted that market indicators are pointing to an increase in deal activity over the next 12 months, based on recent survey data. Shurell spoke about some of the key drivers influencing the Life Sciences deal environment today, such as:

  • The ‘Patent Cliff’, pointing out that nine of the current top 10 selling prescription drugs in the world today will have gone off-patent by 2014
  • The increase in partnering and alliances
  • The globalization of clinical trials and the heightened safety oversight

As the webcast progressed, Shurell pointed out some of the main benefits of using a VDR. As partnerships, clinical trials and licensing deals continue to expand and involve many organizations across multiple regions with hundreds or even thousands of individual participants, the ability to organize, manage and exchange critical documentation securely and efficiently has become a complex challenge.

According to a recent Intralinks and Mergermarket survey, 80% of respondents agreed that VDRs add speed and efficiency to M&A transactions and 62% confirmed that their organizations shaved at least a quarter off the time it takes to conduct a transaction. It’s evident from the survey results that industry professionals recognize the value in VDRs from a transactional perspective, but what else can a VDR offer?

As Shurell discussed, VDRs can streamline the entire deal process from deal preparation, marketing, due diligence, closing and post merger activity. VDRs support the emergence of alliances by creating alignment, opening lines for secure communication, improving visibility and increasing operational efficiency. By using a VDR, all partnership information is centralized in a secure environment that is available 24/7/365 regardless of where you are in the world. Teams have visibility into the status of documents, milestones and other key metrics at all times. Collaboration is made easy via an online neutral environment as documents can be shared with the appropriate people, within seconds.

A lot of valuable insight was shared during the webcast, and based on the good questions we received from the audience, it clearly served its purpose of helping BD&L professionals think about how to make the most of the VDR technology they have purchased or plan to purchase in the future. As we determine areas where additional education/information would benefit our customers and prospects, we will continue to provide resources like this one.

Click here if you’d like to listen to a replay of the “Value in VDRs: Before, During and After the Deal” webcast.

Alison will be speaking on a panel entitled “The Morning After – Ensuring Partnerships Work in the Harsh Reality of Daylight” at the upcoming BioNetwork West meeting in Laguna Nigel, CA October 25-27. If you are attending the conference, please be sure to introduce yourself!