As life sciences companies mature, intellectual property often becomes both their most valuable and most scrutinized asset. Whether you’re entering a collaboration, pursuing a crossover round, or preparing for acquisition, your IP portfolio will anchor the valuation conversation.
What Are Buyers and Investors Really Looking For?
Buyers and investors typically focus on several core aspects of a company’s IP portfolio during due diligence. They may look for ownership clarity, which includes clean chains of title, confirmatory assignments, and full control over any sublicenses. They also assess strategic scope, seeking patents that clearly align with commercial products, manufacturing methods, and assets in the future development pipeline. Competitive durability is another priority, with investors valuing evidence that the company monitors and, when necessary, challenges third-party patents that could threaten market exclusivity. Lifecycle planning is also important, as it reflects a patent filing strategy designed to extend protection while maintaining flexibility to adapt to evolving business and technology priorities.
Considerations When Building a Strong IP Profile
Sophisticated acquirers and investors expect more than a list of patent filings; they want a coherent IP narrative that supports long-term value creation. Companies that can clearly articulate how their IP protects competitive advantage and future market access may achieve smoother negotiations and stronger valuations. Companies should also consider taking the following steps:
- Conduct an internal IP due diligence: Identify and remediate issues before external reviewers find them.
- Map patents to programs: Create a one-page alignment of IP to the development stage and commercial relevance of each asset.
- Review collaboration agreements: Confirm control over improvements, data rights, and joint inventions.
- Prepare summaries for diligence rooms: Organized documentation may accelerate reviews and build buyer confidence.
Key Takeaway
As the financing and M&A landscape remains selective, IP readiness is a key differentiator. For companies attending JPM and others, investing in diligence now may prevent delays later and help maximize leverage when opportunity knocks.