Our Business Model

The productivity of Discovery departments in the large and medium size pharmaceutical companies has dramatically declined in the last decade.

Today, almost half of the R&D budgets of the large pharmaceutical companies are being invested in external collaboration with smaller biotech companies or the Academy: internal discovery is reduced and resources are concentrated in the phase of advanced development, the clinical phase, production, regulatory activities and marketing.

"Small is nice", a slogan that has become obsolete for the traditional manufacturing industry, still holds true when applied to the field of innovation, which has a global value even if it is generated with little in the line of financial resources.

The Italian scientific community has always shown an enormous, and largely untapped, capacity to generate innovation opportunities, which are then not being transferred into value-generating activities. That is the reason why Italy is a virgin area that is able to provide some surprising results.

Our investment policy at a glance:

  • Only innovative R&D projects, with international scope and covered by global IP rights.
  • Each start-up has been incorporated as a limited liability company, with annual funding depending on the need of each research program.
  • All the NewCo's are preferably based in the "Bioindustry Park del Canavese".
  • Common shareholding structure: 60-75% held by Eporgen Venture and the remaining 25-40% held by the inventors/researchers.
  • No cash injections from the inventors: a non dilution clause guarantees a consistent shareholding by the researchers for the first three years.
  • A Board of Directors and a Scientific Advisory Board has been set up for each Company in order to guarantee constant tutoring and monitoring of managerial and scientific aspects.
  • Eporgen Venture is directly in charge of the financial and general administration of the company, as well as the business development of each individual initiative.

Different exit options are available depending on the specific situation of each company.

  • New capital injection (Eporgen)
  • New investors (private or institutional)
  • Licensing-out of products or projects
  • Industrial partnerships
  • Product/service marketing
  • Sale/merger
  • IPO or Venture Capital for Eporgen