Jb. Keller et Pb. Plath, Financing biotechnology projects - Lender due diligence requirements and the role of independent technical consultants, APPL BIOC B, 77-9, 1999, pp. 641-648
An increasing number of biotechnology projects are being brought to commerc
ialization using conventional structured finance sources, which have tradit
ionally only been available to proven technologies and primary industries.
Attracting and securing competitive cost financing from mainstream lenders,
however, will require the sponsor of a new technology or process to underg
o a greater level of due diligence. The specific areas and intensity of inv
estigation, which are typically required by lenders in order to secure long
-term financing for biotechnology-based manufacturing systems, is reviewed.
The processes for evaluating the adequacy of prior laboratory testing and
pilot plant demonstrations is discussed. Particular emphasis is given to sc
ale-up considerations and the ability of the proposed facility design to ac
commodate significant modifications, in the event that scale-up problems ar
e encountered.