The Health Value Fund
Numoda Capital Innovations – Our new life sciences fund
Our investment fund is uniquely positioned to realize substantial and early returns on investments in undervalued life sciences companies with promising therapeutics, devices and diagnostics.
These companies will gain value from the substantial improvement in clinical trial success achieved from the trial design, oversight and systems integration expertise of Numoda affiliates.
Our new fund uses a proprietary selection criteria, proactive
risk management and early partnering opportunities through:
- De-risking with industry leading study design, clinical and financial oversight and systems integrations
- Early visibility of study performance for investors/partners through TruPoints™
- Sponsors investing 20% of capital committed
Universe of potential investments
- Breakthrough novel technologies that would achieve a significant value inflection with clinical success
- Companies with milestone agreements in place subject to substantial risk of trial execution
- Undercapitalized companies with history of budget overruns and missed clinical targets
- Companies with upcoming PII-PIII trials that had prior identifiable conduct issues (e.g., poor patient selection, faulty logistics, data inconsistency and improper study design)
Proprietary Evaluation Process
Our universe of investment targets begins with the firms currently sponsoring Phase II and Phase III clinical trials. Numoda Capital Innovations does not delve into the unexplored, speculative realms of pure science. We focus on medical technologies that are making their way through the development pipeline.
Next, we apply our patented benchmarking libraries and analytics platform to:
Compare candidate trial metrics to norms; (2) discover risk reduction potential; (3) accurately project cost and timelines. NCI then performs a thorough FDA review process with the assistance of former senior FDA officials for the purpose of: (1) identifying potential issues and barriers to approval; (2) formulating complex strategies to enhance the likelihood of approval; and (3) estimating the extent of potential additional trial requirements. This removes another layer of risk and improves ultimate chances of success.
Due to Numoda’s clinical development expertise, NCI’s universe of potential investments will include medical technologies that have a history of fixable mismanaged process – cases in which the trial process has broken down and compromised the approvability of promising compounds. At Numoda we say that “trials fail drugs more often than drugs fail trials” – and our own ability to rescue treatments and therapies becomes a distinctive investment edge. When we can identify a good drug caught in the morass of bad development, invest in it, and then rely on our affiliate, Numoda Corporation to move it through a well-conducted trial, we gain a tremendous investment edge with potentially high margins.
The next step is being able to find a strategic partner capable of taking the drug post-trial to marketing. Numoda Capital Innovations – which knows the sponsoring company, knows the drug’s history, is able to assess likely success of the clinical trial – also is familiar with the universe of likely partners, whether global pharmaceutical companies or venture capital investors. When we see both portfolio fit and strategic interest on the part of a potential partner, then one more investment criterion is met.
The final determinants of suitability are 1) the securing of third-party market metrics to confirm the economic viability of the drug and 2) ability to establish a fixed timeline for value creation and exit. Once these are secured, we can go forward with our investment – leaving us with investment prospects numbering fifty to sixty companies.
The entire selection process is made possible by the expertise lodged in the Numoda affiliates. Our years of trial management expertise – enabled by advanced, patented technologies applied to every phase of trials – gives Numoda Capital Innovations investments an unmatched level of investment intelligence and control.
Selection – additional refinements and strategic considerations
From the opportunities that make the cut, the NCI investment committee will review:
- IP, regulatory, timing, and likely labeling
- Report on medical technologies from a deep bench of scientific experts in therapeutic area
- Evaluation of strategic exit options by licensing and commercialization executives
- Statistical analysis for cost effective optimization of p-values