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21159 Pharma collaborates with GLS Capital, one of the world’s premier private investment firms exclusively focused on providing capital for legal and regulatory risk. With more than $600 million of assets under management, GLS Capital provides bespoke financial solutions to life sciences companies involved in litigation. 

GLS Capital’s unparalleled biopharmaceutical industry experience allows GLS to contribute more than just capital, and its collaborative and transparent approach results in a highly efficient financing process.

What is Litigation Finance?

Litigation finance (also known as litigation funding) is the practice of providing capital to businesses involved in litigation in exchange for an interest in the outcome of the underlying dispute. GLS will advance the expenses associated with a dispute and can also provide capital beyond what is required to fund the litigation for use by our partners for general corporate purposes.

Benefits of Litigation Finance

It is not unusual for those involved in litigation to be pressured to abandon meritorious and valuable lawsuits due to capital constraints. This is where litigation finance as a corporate finance tool can be important.  It provides a means to pursue meritorious disputes through resolution that may otherwise not be fully exploited due to prohibitive costs.  It can help companies who are constrained by the resources, time, and energy required to pursue a lawsuit by mitigating the cost and risk of litigation.

Even though GLS provides the capital necessary to pursue litigation, all litigation-related decisions, such as whether to settle and on what terms, remain in the hands of our partner and their lawyers.

Litigation is Expensive

The price of resolving disputes through the legal system can be very high. A top-tier U.S.-based litigation partner can cost upwards of $1,500 per hour. Further, there are other expenses related to the case that can easily run hundreds of thousands, if not millions of dollars. Litigation funding can cover these expenses and more.

Litigation is Lengthy

Complex litigation typically lasts several years, and the slow pace can place significant strain on a company’s financial flexibility. GLS Capital is structured to handle the pace of civil litigation, allowing companies to focus on their operations.

Litigation is Risky

No matter how strong the merits of your case may be, or how good your lawyers are, litigation is inherently uncertain. Judges, juries, and lawyers can make mistakes, jurors bring their own unknown biases, and litigation outcomes are often all-or-nothing. GLS Capital is designed to mitigate this type of risk and uncertainty associated with litigation.

Non-Recourse

The capital provided by GLS to fund litigation expenses is offered on a non-recourse basis, such that GLS only earns an investment return if there is a successful resolution of the litigation. Because it is non-recourse finance, GLS does not typically have collateral or a security interest in other corporate assets.

Non-Dilutive

The capital provided by GLS is non-dilutive to the current equity owners, as the only collateral securing its investment is the outcome of the litigation.

Uses of Capital

The types of complex disputes in the pharmaceutical industry that we fund range from breach of contract (licensing, supply, commercialization, confidentiality agreements) and trade secret theft to breach of fiduciary duty, antitrust, and other complex commercial litigation frequently arising in the biopharmaceutical industry.  Further, GLS has extensive experience funding patent disputes in the pharmaceutical industry, including Hatch-Waxman litigation, and is not limited to funding cases only in the United States.  

Finally, in select opportunities, GLS Capital can also fund expenses associated with product development, such as formulation studies, scale-up, clinical studies, stockpiling for launch, and regulatory filing fees.

Why GLS Capital

The GLS Capital team has decades of experience litigating disputes in the pharmaceutical industry and has the industry-specific knowledge of the legal and regulatory landscape which allows it to bring more than just capital to a transaction. They act as a resource for you, offering unique insights into the latest strategies, defenses, and litigation theories, while providing litigants with the capital they need to pursue their cases or manage risk, so they can focus on what is important: growing their business, bringing products to market, and advancing patient care. 

Contact GLS Capital Today

How Can We Help You With Your Litigation Financing Needs?