Challenge
Our challenge was to deliver a life sciences biotech valuation to our biotech client. The client requested an overall company valuation by assessing the individual pipeline assets.
Process
Before our kick-off meeting, the client collected all the necessary data and sent it over to us for a better understanding of their pipeline. This information formed the foundation of the project. After our preparations, we held a kick-off call with our client. During the call, we clarified details about the valuation, discussed the parameters and assumptions, provided a deeper explanation of our methodology, and addressed the client’s questions. After the meeting, we decided to create four valuations—one for each asset in the pipeline—to determine the overall company value.
Valuation Method
Our valuation method is based on a risk-adjusted net present value (rNPV) model, incorporating key assumptions. These assumptions fall into two main categories: development stage and market stage.
By integrating our market research and the client’s data, we were able to create a draft valuation report.
Draft Report
The draft report included our market analysis and a detailed justification of all assumptions in the valuation. In addition, the report provided the final valuation of the four assets. After finalizing the draft, we sent it to the client for feedback. Once we received their feedback, we scheduled a meeting to discuss the report, resolve any ambiguities, and incorporate their input.
Result
Once the assumptions were finalized, we recalculated the value using our rNPV model. The updated numbers were incorporated into the final report, which was delivered to the client. The client expressed great satisfaction with the final report, confident that it would provide strong support in their upcoming investor discussions. The valuation empowered them to negotiate from a position of strength.
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