Harrison Hayes is a strategic consulting firm that specializes in BioArbitrage, which involves purchasing undervalued life science assets and reselling them at a higher market value. BioArbitrage funds identify assets whose owners underestimate their worth compared to market value. The funds purchase the assets and immediately resell them on the open market for profit. Harrison Hayes uses proprietary tools like the Transforium database and PIPV analysis to evaluate opportunities and maximize asset value. They also provide consulting services to support BioArbitrage initiatives.

1. Introduction to BioArbitrage

2. Introduction to BioArbitrage
What is BioArbitrage?
Who is Harrison Hayes?
Harrison Hayes and BioArbitrage
The Tools
Contact Information
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3. What is Arbitrage?
Arbitrage involves earning a risk-free
profit without the outlay of capital.
Arbitrage takes minimal investment for
the guarantee of high return
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4. BioArbitrage Defined
 In BioArbitrage, an asset is identified where the owners undervalue the asset
against the market value.
 A BioArbitrage fund purchases the asset and then sells it on the open market
for an immediate return.
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5. How it Works
Economics of BioArbitrage
Sell Asset Here
Market Value
Buy Line
Buy Asset Here
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6. Introduction to BioArbitrage
What is BioArbitrage?
Who is Harrison Hayes?
Harrison Hayes and BioArbitrage
The Tools
Contact Information
6

7. Harrison Hayes – Who Are We?
Harrison Hayes is a strategic consulting firm to the life, chemical, and material
science industries. Specific areas of expertise reside in our unique and
proprietary research methodologies that support strategic and tactical decision
making processes for our clients.
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8. Harrison Hayes: Timeline
1998: 2001:
1991:
Bill Smith re- Innovation practice
Addison Whitney
acquires Addison spun-off from
founded by Bill
Whitney Addison Whitney
Smith
1995: 2001: 2007:
Addison Whitney Innovation comes to Addison Whitney
sold to Interpublic light sold to Inventive
Group Health; Harrison
Hayes is born
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9. Harrison Hayes: Bill Smith
Bill Smith Bio
Founder and Managing Director of Harrison Hayes, LLC, a strategic consulting firm with
an emphasis on the creation of disruptive innovation products and platforms. Prior to
Harrison Hayes, Bill was the Founder and CEO of Addison Whitney, which today, is the
third largest branding consultancy in the world. Bill sold Addison Whitney in 1995 to
Interpublic Group (NYSE:IPG) and led their Healthcare Acquisition Team for three years
which was responsible for over $3 Billion in transactions. He re-acquired Addison
Whitney in 1998. Bill acted in a dual role with Addison Whitney (Chairman) and
Harrison Hayes until 2007.
Education
B.A., Berklee College
M.A., Colorado State University
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10. Introduction to BioArbitrage
What is BioArbitrage?
Who is Harrison Hayes?
Harrison Hayes and BioArbitrage
The Tools
Contact Information
10

11. Harrison Hayes and BioArbitrage
-Initiation
 A General Partner will shape the investment charter
with specific criteria and areas of investment
interest.
 The General Partner has the Right of First Refusal to
acquire the Funds portfolio of assets.
 In the event of non-acquisition, the General Partner
maintains the opportunity of financial gain from the
asset’s exit strategy.
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12. Harrison Hayes and BioArbitrage
-The Option
 There is typically a designated Managing Director of
the Fund.
 The Managing Director and Owner of the identified
asset will agree on appropriate acquisition value.
 The Managing Director will perform its PIPV
proprietary analysis to determine that the
acquisition price is less than market value.
 The Fund will exercise the option to purchase the
asset within a time period of 12 to 18 months.
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13. Harrison Hayes and BioArbitrage
-The Auction
 The Managing Director will market the asset in a
controlled auction.
 Managing Director and asset’s Owner will
determine the appropriate strike price.
 The asset will be auctioned to buyers who are
willing to pay more than the agreed strike price.
 The fund pays the owner the agreed Strike Price
and retains the differential.
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14. Harrison Hayes and BioArbitrage
-Terms
 A General Partner will invest an previously agreed
upon amount.
 Managing Director to receive a 2.5% Annual
Management Fee.
 Managing Director to receive 20% of the “carry”.
 Fund will be for a term of seven (7) years.
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15. Harrison Hayes and BioArbitrage
-Why Invest?
 The Fund is a key piece in building an innovation
pipeline.
 The Fund has the ability to deliver novel
technologies and intellectual property unlike
traditional methods.
 This Fund will provide exposure to global
investments “off the grid”.
 Creates selective investments at reasonable
valuations.
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16. Introduction to BioArbitrage
What is BioArbitrage?
Who is Harrison Hayes?
Harrison Hayes and BioArbitrage
The Tools
Contact Information
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17. Tools for Success: Technology Scouting
Technology Sourcing includes the identification of technology developments and the
facilitation of the sourcing of technology.
Provisioning of Technology
Intelligence to facilitate the
Identification, assessment and
Technology Management
usage of information on
technological developments Acquisition, development,
storage, usage and selling of
technological knowledge
Technology Technology
Intelligence Management
Scouts identify and assess
new technologies Scouts facilitate the sourcing of
Technology technology
Scouting
Building and using a network of
experts for competitive advantage
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18. Tools for Success: Technology Scouting
Technology Scouting Process consists of five Technology Intelligence steps plus the step of
Technology Sourcing.
Selection of Usage of
Filtering,
Definition information Evaluation information
Collection analyzing,
of search sources and and and
of data interpreting
areas methods to decision sourcing of
of data
employ making technology
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19. Tools for Success: Technology Scouting
Technology Sourcing supports the external sourcing of technology and the product
specification and development.
Innovation Management
Product Prototype
Fuzzy-front-end
specification and validation and Market Launch
of Innovation
development testing
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20. Tools for Success: Technology Scouting
Technology Sourcing supports the external sourcing of technology and the product
specification and development.
Technology Management
Storage, Internal
External Technology generation and usage of Technology selling or
Sourcing technological licensing
knowledge
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21. Tools for Success: Technology Scouting
Framework for Empirical Research: PLS –path analysis will be used to analyze the success
factors of technology scouting and how to organize it best.
Management
Factors Scouting Success Factors
Areas
Defined Process
Functional interweavement
Formalized connection to R&D Organizational Input for R&D projects
Formulized connection to
Characteristics Triggering of new R&D
Marketing projects
Methodological interweavement Stimulation of Triggering of new
business field
Innovation
Boundary spanner capabilities
Network Size Characteristics
Help in assessment of
Technological competence of the scouts technology
Internal Network Facilitation of Contact to relevant
sources
Technology
Incentive System Scouting Sourcing needs
identified
IT-Support Tools Management of Support in acquisition
Balanced scout portfolio Scouting Network of technology
Role Differentiation Successful acquisition
of technology
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22. Tools for Success: Technology Scouting
Project Planning: PLS-path analysis and in-depth case studies will be used to study
organization and success factors of technology scouting.
Model Quantitative Model
Qualitative Writing of
Interviews/Case Valuation
Interviews Building Dissertation
Studies
In depth Modeling a Build on the Based on the The dissertation
interviews with framework for Hypothesis of qualitative data, will discuss
10 multinational research on the framework – partial least- technology
companies success factors 50 qualitative square path scouting as of a
of technology Interviews are analysis is used method of
scouting conducted. to validate the technology
hypothesis intelligence and
technology
In depth case
The case studies management
studies will be
conducted for are analyzed to
six companies. gain knowledge
of best practices
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23. Tools for Success: Technology Scouting
Motivation and Research Question: Further research on Technology Scouting is needed to
identify success factors and to give recommendation on how to organize it.
 Increase in technology complexity
 Globalization of R&D
Motivation
 Shorter product life cycles
 Increasing volatility of markets
No sufficient research on ….
 …success factors and
Research Gap
 …organization of technology scouting and
 ...interaction with other function of the organization
 What are the aims of Technology Scouting?
 What are important success factors of Technology
Research Scouting?
Questions
 How should Technology Scouting be interweaved
within the company?
 What organizational forms of Technology Scouting
have proven to be effective?
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24. Tools for Success: Transforium™
The Transforium™ database is
proprietary and unique to
Harrison Hayes. The
Transforium™ contains over
3,000,000 in-licensing, out-
licensing, and transactional
opportunities. Transforium™
provides our clients with an
additional resource of “off the
grid” opportunities.
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25. Tools for Success: PIPV™
Our Proprietary Intellectual Property Valuation (PIPV™) service utilizes a
proven methodology specifically designed to:
 Identify promising compounds.
 Provide important market and competitive analysis.
 Assess patents and their legal defensibility.
 Estimate the likelihood that a specific compound will gain FDA
approval.
 Perform valuations on individual compounds or entire pipelines.
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26. Tools for Success: PIPV™
-Commercial Analysis
Harrison Hayes provides independent, third party research designed to
maximize the value of identified intellectual property. Harrison Hayes can
identify the compounds and targets with the greatest potential for
commercial success. Our team members combine expertise from both the
scientific and commercial realms of the life sciences industry.
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27. Tools for Success: PIPV™
-Financial Analysis
Properly valuing assets is paramount to the Fund’s success. Harrison Hayes
possesses the valuation experience and domain expertise necessary to accurately
assess the value of your products or technologies.
 Identify market comparables
 Perform quantitative analysis
 Assist in development of pro forma financial statements
 Calculate "burn rate" and other financial projections
 Develop schedules and timelines for product development
 Estimate likelihood of milestone success
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28. Tools for Success: PIPV™
-Legal Analysis
Harrison Hayes can evaluate the legal status of your identified intellectual property.
 Investigate all relevant patent initiatives
 Assess legal defensibility
 Determine overall strength and scope of intellectual property rights
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29. Tools for Success: PIPV™
-Feasibility Analysis
Harrison Hayes will render an opinion on the feasibility of specific opportunities.
 Assess experience and track record of management team
 Evaluate development progress and timelines
 Perform competitive and substitute analysis
 Analyze potential exit strategies
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30. BioArbitrage
What is BioArbitrage?
Who is Harrison Hayes?
Harrison Hayes and BioArbitrage
The Tools
Contact Information
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31. www.harrisonhayes.com
Phone: 704.906.3402
Email: wsmith@harrisonhayes.com
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