Using a Virtual Data Room for Life Sciences and Pharmaceuticals

If you run an organization in the life sciences sector, you’ll need to engage in strategic partnerships and fundraising activities at some point. So why not let virtual data room services facilitate the process? 

While adopted primarily for due diligence, virtual data rooms (VDR) have proven valuable for biotech and pharmaceutical transactions. Keep reading to discover the benefits of VDRs and how life sciences and pharmaceutical organizations can benefit.

How life science organizations and pharmaceutical companies use virtual data rooms

VDRs provide an innovative platform complete with organization, collaboration, and security tools. It’s perfect for settings where you have to ensure tight data security while providing limited access to external parties.

The key benefits of a pharma and life science data room include:

  • Guaranteed, iron-clad data security at all times
  •  24/7/365 client support 
  • Access to the data room anytime from anywhere
  • Document control tools that allow viewing, editing, downloading, and sharing files
  • Complete access control for every document, file, and folder
  • Collaboration tools to facilitate teamwork and strategic management

Now, let’s take a closer look at the ways life science companies can use virtual data rooms.

Clinical trials

Clinical trials involve large amounts of confidential data. Research facilities take on responsibility and are accountable for sensitive medical information.

A virtual data room can help organize and safeguard the data. It lets you centralize all the files, monitor research communications, and manage knowledge transfer with Q&A tools. You get more control over access permissions and can easily share information with multiple parties without compromising security. 

Biotech licensing and patenting 

With virtual data rooms providing a secure way to store confidential information, you can easily share files with multiple potential licensing partners. They can all privately review your patented discoveries simultaneously.

Equipped with a tracking system, VDRs provide detailed analytic reports that show you the level of engagement coming from every external party. This allows you to see their level of interest and know early on which licensing organization is most interested in your discoveries.

Biotech IPO

Taking your company public requires intense preparation. You can lighten the load by regularly reviewing your company’s finances and staying on top of legal and financial records.

Prepare for the due diligence process by organizing important documents like operating agreements and articles of organization in a VDR. You can refer to a number of life science IPO checklists available online and gather the necessary files well in advance.

Pharma due diligence

Whether you need to carry out online due diligence for fundraising, licensing deals, or M&As, a pharma data room can help you prepare and manage a large repository of data to complete the process. More importantly, you’ll be able to provide various levels of access to multiple parties — all while keeping sensitive data secure.

Built-in project management tools will help you guide the due diligence process from start to finish, while security features like two-factor authorization and watermarking prevent data breaches and leaks.

Mergers and acquisitions (M&As)

Virtual data room services are especially helpful for M&As, where the due diligence process can get resource intensive. VDRs provide parties from the sell and buy sides with convenient access to the same data repository. 

Lawyers, consultants, accountants, and other players can easily and quickly upload, view, share, and edit relevant documents and files. Potential buyers can even use the VDR to request more information regarding specific data.  

Biotech fundraising

You need to properly present the significance of your project to raise funds or convince potential donors. To do this, you need to be able to dig up the right data when you need it.

VDRs are equipped with automatic indexing that sorts out data and lets you conveniently search for and pull up the files you need. They also allow you to present documentation in various formats. For instance, you can share DICOM files like X-Rays and CT scans.

IP management

With billions at stake, science-based innovators need to properly manage their intellectual property (IP) portfolios. This entails safeguarding patents, copyrights, trademarks, and trade secrets. The data and certificates should be accessible to relevant stakeholders while staying heavily guarded. VDRs offer the perfect solution for such needs.

To maximize a portfolio, IP assets shouldn’t be static. Stakeholders must track the development of the business tied to the IP and anticipate where it’s headed so they can pivot accordingly. This involves strategic coordination.

IP licensing deals

In IP licensing deals, both parties need access to confidential data so they can properly estimate the value of the assets. Allowing for detailed access permissions, VDRs are the perfect platform for such transactions.

Administrators can provide access to relevant documents only at any given time, allowing stakeholders to focus on a specific stage of the evaluation. You can also count on data rooms to help you ensure compliance and prevent legal violations. 

Regulatory communications

Offering secure data storing with limited access to external parties, virtual data rooms are just the platform to facilitate communications and file sharing with regulatory advisors. Built-in organizational and document control tools allow for smooth regulatory filing and compliance.

The benefits VDRs offer are sure to convince life science and pharmaceutical companies to use them. However, with so many on the market, how do you choose the fitting virtual data room?

How to choose the right virtual data room for pharma

Not all virtual data rooms are created equal, nor are they designed for the same purposes. Make sure you choose a data room that specifically caters to your industry. For instance, iDeals provides a VDR that’s structured for life sciences and pharmaceuticals. They take pride in safeguarding critical data so their clients can focus on improving human living standards.

Virtual data rooms designed for the life sciences offer the following features:

  • Compliance with international regulations like HIPAA, GDPR, and PIPA 
  • Easy-to-use interface, without extra training required
  • Multilingual support
  • 24/7 customer service
  • Availability of data centers in key locations to ensure compliance with governmental regulations
  • Reliable loading speed and uptime
  • Video storage capabilities for showcasing portfolios, products, and case studies
  • Detailed access permissions
  • Full audit trails
  • Several levels of access authentication
  • Security features for data leak prevention
  • IP restrictions
  • SOC2 and ISO 27001 compliances

Virtual data rooms go out of their way to ensure smooth sailing and successful biotech and pharmaceutical transactions. But it all boils down to choosing the right data room. So we recommend working with a provider that understands your unique needs and is prepared to deliver the essential tools.