Background
Oncologie launched operations in 2018 in the United States and China with $16.5 million in seed funding and the acquisition of its first two-drug compounds for development in the area of immuno-oncology. Danforth Advisors was engaged shortly thereafter for strategic CFO advisory, part-time controller services and financial planning and analysis services (FP&A). We established the company’s initial finance function, scaling it up over time.
As business activity ramped up, technical accounting services were required to prepare the company for audit. The company entered into multiple, complex accounting transactions, such as a Series A and B preferred stock issuances, a co-development agreement, and other financial instruments. We deployed a VP of Finance with technical accounting expertise, who prepared the technical accounting white papers as well as the financial statements and footnote disclosures beginning from inception. In addition, he managed the audit process from start to finish, ensuring all information requested was prepared accurately and in a timely manner. These efforts resulted in a smooth audit with no surprises. The company is also utilizing the VP of Finance to assist with the quarter-end close.
Danforth Role
- Interim CFO services spanned nearly two years following the company’s launch, including advisory on corporate strategy and leadership of three financing rounds totaling over $100 million USD
- Controller services were established to manage day-to-day operational accounting needs, such as payroll processing and accounts payable
- FP&A services, including monthly profit and loss reviews and analysis
- Accounting advisory services: technical accounting and audit readiness
Results
With a two-year audit completed and the audit report issued, Oncologie is now well prepared to provide potential new investors with historical financial information. In addition, existing investors can feel comfortable that the company was able to successfully pass an audit by KPMG. Lastly, the management team can look forward without having to worry about the credibility of the company’s historical operations from inception, and the accounting for its complex transactions.
The company hired a Senior Director of Finance and Accounting Manager, as it looks to bring on its first full-time CFO. We ensured a smooth transition to the company’s internal resources and will continue to support the team with specialty skill sets on an as-needed basis. “The Danforth team built a foundation that served us well as a start-up and adapted to our changing needs as we evolved. Moreover, the quality of their work was superb and earned the respect of our employees, Audit Committee and external auditors,” said Laura Benjamin, CEO of Oncologie. “Our internal finance team now has complete confidence to continue working with Danforth, whose contributions established the strong position we are in today.”