Life science businesses typically need to attract and retain and incentivise highly skilled staff and share incentives are one of the best ways to do this.
Outside of staff, life science business are likely to have associations with experts in their field in advisory, non-exec or consultancy capacities that the company might wish to involve in equity participation schemes.
At Pett Franklin we are enormously proud to have supported the growth of many bio-technology companies across the UK and in particular around Cambridge and Oxford.
In many cases bio-technology companies are loss-making due to most of their activity relating to research and participating in regulatory trials.
Indeed until a product has been sufficiently researched and completed clinical trials, the business often does not generate revenue. And in many cases if clinical trials are passed the business is swiftly sold to a large pharmaceutical business to facilitate marketing.
This life cycle means that for bio-technology companies the most vexed and arguably important aspect of any share scheme is tax valuation since traditional valuation based on earnings or assets makes is not appropriate for most bio-tech companies.
How Pett Franklin can help
Whether you are at the initial round of funding or well into clinical trials with a number of series of funding rounds behind you, Pett Franklin is ideally placed to advise and implement a share scheme for your business and put the tax valuation of the business in context.