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Tocreate a bidding waras a small biotech, you mustmanufacture competitive tensionusing the principles of scarcity, strategic fit, and time pressure — all while signaling that multiple parties are circling a high-value, time-sensitive asset.

Below is adetailed strategy playbookfocused purely on how toinitiate, escalate, and extract valuefrom a competitive process —without overplaying your hand.

BIOTECH BIDDING WAR PLAYBOOK

1. Define the Spark: What Are They Competing For?

Create an asset profile that makes multiple Pharma say:“We can’t afford for our competitor to get this.”

• Strategic overlap: Matches unmet need or pipeline gap inmultiple Pharma portfolios.

• Asset scarcity: Unique IP, clinical progress, or platform potential not easily reproduced.

• Triggering milestone: E.g. compelling Phase 1 readout, BTD filing, or validated biomarker that resets asset value.

Example: A drug that boosts ADC safety across payloads, or protects against cardiotoxicity in blockbuster regimens.

2. Activate Interest Quietly: Build a Bench of Suitors

You muststart bilateral discussions with multiple potential buyers, under CDA, without appearing desperate or running a public auction.

• Select 3–5 aligned Pharma(e.g. those already active in your target pathway or therapeutic area).

• Offer each something slightly unique— custom data cuts, KOL calls, or co-publication opportunities — to generate buy-in.

• Set expectations early: “We are exploring strategic interest and expect to align in the coming months.”

Critical: At this point,do not mention exclusivity or lead interest. Keep all parties believing they areearly,favored, and mustmove fast.

3. Escalate Tension: Signal Competitive Activity

Once 2 or more parties are advancing (data room access, diligence calls),intentionally leak tension signals— even subtly.

Tools to deploy:

• Timeboxing: “We anticipate making a partnering decision in 6–8 weeks after readout.”

• Progress signals: “We’ve entered diligence with multiple parties.”

• Media & whisper leaks: Controlled KOL commentary or press hinting at strategic interest.

• Investor or analyst chatter: Fuel speculation through known biotech investors or ASX/HotCopper-type sentiment.

Optional: Hire aboutique bankerto “organize interest” — a credible third-party advisor increases FOMO and accelerates timelines.

4. Trigger the Bidding War

Use a keycatalyst eventto force interested parties to the table and turn soft interest into formal proposals.

Best catalysts:

• Data readout(e.g. P1 cardiac protection + tumor shrinkage)

• BTD / Fast Track designation

• Regulatory win or IP extension

• High-impact publication or ASCO/EHA presentation

Then:

• Notify all interested parties thatterm sheets are due by [date].

• Giveno more than 2–3 weeks— fast enough to prevent collusion or hesitation, slow enough for proper valuation.

• Allow minimal negotiation per party to sharpen offers.

5. Weaponize the Lead Bid

Once you receive thefirst strong offer, you don’t accept — youuse it.

• Share key non-price terms (e.g. equity stake, co-development rights) under CDA with others.

• Give partiesone chance to beat it, and set a firm internal deadline.

• Push towardreverse due diligence— letting you interview potential partners for fit and strategic alignment.

Key psychological lever: Make each bidder believe this isthe final window, and they’reseconds away from losingthe asset forever.

6. Close the War

You can close in two ways:

• Best and final offerprocess (winner takes all)

• Multi-stage option/licensing dealwhere multiple Pharma win different territories or indications (rare but possible if structured right)

Once closed, maintain momentum with:

• Co-announcements

• Roadshows to re-rate valuation

• Extension strategies for pipeline/label expansion

Critical Success Factors

	Factor	Description
1	Credibility	Robust data, strong KOLs, and clean IP make your assetworth fighting over.
2	Control	Rigid timelines, controlled disclosures, and data room access = leverage.
3	FOMO	The perception thatsomeone else is biddingis often more powerful than the bid itself.
4	Optionality	You must always haveanother path— either another buyer or ability to go alone.
5	Discipline	Don’t get greedy, and don’t bluff too hard — bad faith kills trust fast in Pharma M&A.