The risk adjusted, net present value (rNPV) method is the standard valuation method used within pharma and biotech companies when valuing assets beyond discovery stage. This approach depicts the drug/pipeline development plan using R&D costs & timeline, success rates and peak sales potential. The quantity of available information in the pharmaceutical area enables to determine and benchmark those assumptions. Well-calibrated the rNPV method is thus a powerful tool to build, challenge and value the company’s strategy. It also shows how the value of the company develops along reaching milestones. Is it however enough for investors?
From an investor’s perspective it is crucial to understand how long it takes before an exit and what is the potential for ROI (Return on Investment). They need to figure out the conditions to harvest their investment as well as to anticipate the multiple later-round investors and incentive packages to key employees that may dilute their stake.
While rNPV highlights the roadmap for the scientific bet of the company, the VC method highlights the one for the cash to be invested in.
The purpose of this workshop is to decrypt the reasons behind using rNPV or VC methodologies to value a Biotech company. With the support of interactive cases the participants will learn more on how Biotech companies can better anticipate the VCs’ point of view when presenting their valuation work.
The workshop will be held on March 29th, 2017 at the Technologie Park Basel (Hochbergstrasse 60C, 4057 Basel), 16:00-19:00.
|16:00||Introduction, Stephan Emmerth, BaselArea.swiss, Zaki Sellam, Swiss HLG|
|16:10||Value of Science vs. Value of Cash in Biotech companies’ valuation, Marie Petit, Villiger Valuation|
Participation is free of charge but seats are limited.
Please note that registration via email to firstname.lastname@example.org@email@example.com is compulsory and subjected to validation. Priority will be given to people with concrete projects and/or already founded start-ups.
We look forward to meeting you.