This white paper is a continuation of the first, entitled "Must-Know Finance Concepts for Life Sciences Valuations." It goes into more detail on the key concepts and most common methodologies used to evaluate life sciences assets.
Discussion topics in Part 2 include:
- Which asset valuation methodology is most used by big pharma to evaluate possible partners or acquisitions?
- An explanation of three fundamental concepts in valuation: risk-adjusted value, cost of capital and present value
- What are some cash flow examples for a situation when the asset is early in the product lifecycle, for out-licensed, and for in-licensed products?
- How do my expected deal terms relate to my forecast cash flows? How can I use this to make better decisions on licensing timing?
If you are an entrepreneur who plans to raise (or currently is raising) financing, licensing an asset or selling your company, a private investor who wants to estimate and negotiate start-up share value, or any other professional who is active in the life sciences investing sector, you'll benefit from this more detailed explanation of life sciences valuation methodologies.