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Avid Corp.

Division of Gilead Sciences Inc.

Latest From Avid Corp.

Earnouts and Biotechnology Acquisitions

Acquisitions of biotechnology companies have been rare, in part, because of the challenge of valuing them. Target companies are usually years away from earnings; the stock prices of both the acquirer and target often fluctuate widely; and acquirers are afraid that a biotech's most valuable assets--its people--will walk away after the deal. earnouts can be helpful in addressing all of these issues.
BioPharmaceutical Business Strategies

Somatogen's Pot O' Gold

For Somatogen and many others, the earnout potential in M&As not only extends the time frame they need to achieve certain milestones and/or sales goals, but allows them to receive higher purchase prices.


The theory was that biotechs would become the innovation engine of Big Pharma, creating the products that drug companies would commercialize. Now, the trend has reversed itself. Drug companies are helping biotechs fill their pipelines, but with this twist--biotechs are then going out and selling those products to someone else at higher valuations.
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Company Information

  • Industry
  • Biotechnology
  • Pharmaceuticals
  • Therapeutic Areas
  • Alias(es)
  • Ownership
  • Private
  • Headquarters
  • Worldwide
    • North America
      • USA
  • Parent & Subsidiaries
  • Gilead Sciences Inc.
  • Senior Management
  • William L Flaherty, VP, Fin. & CFO
    Michael Otto, PhD, VP, R&D
  • Contact Info
  • Avid Corp.
    Phone: (215) 386-5220
    3401 Market St.
    Suite 300
    Philadelphia, PA 19104