What acquisition price, sources and uses, and sponsor economics create a credible transaction case?
Model profile
Biotech & Pharma Valuation
Value a listed biotech or pharma company the way life-science analysts do. Value each drug by risk-adjusted NPV from its phase, probability of success, launch, peak sales, exclusivity and development cost, add net cash, and check that the cash lasts until the next trial readout.
Decision scope
Questions this model helps you examine
How do operating projections, cash generation, and debt paydown support the proposed capital structure?
How do exit timing, exit multiples, and downside cases affect sponsor returns and value per share?
Model capabilities
What this model includes
The profile below is generated from the same catalogue and workspace definitions used by the application.
- Benchmarks by therapeutic area, partnering royalties and milestones, priority review vouchers, competitor erosion and US Medicare price negotiation
- An offer price build with a control-basis fairness view, a valuation report, and an audit trail with reviewer sign-off
- A risk-adjusted NPV per drug: probability of success, launch, ramp to peak, loss of exclusivity, margin and development cost
- Probabilities default to the industry benchmarks for each phase (BIO, Informa and QLS 2011-2020)
- Marketed products with patent cliffs beside the pipeline; the pipeline share of value
- Company value: the drugs - platform costs + net cash; value per share
- The cash runway to the next trial readout and the dilution a raise would cause
- Every Company Valuation method: three statements, WACC, comparables, precedents and the football field
Build the case
Inputs and workspaces
- DocumentsUpload up to ten annual reports, filings, presentations and lists; review what was read, then apply it.
- Valuation settingsCompany and market data, DCF, cost of capital, comparables and the football field.
- Forecast assumptionsScenario, growth taper, costs, working capital, assets, leases and financing.
- Reported financialsRevenue segments, reported years and option tranches.
- Peers and transactionsComparable companies, sum-of-the-parts businesses and precedent transactions.
- Market evidenceBroker targets, share price history, addressable markets and the macro outlook.
- Audit trail and sign-offEvery saved change to the case, and the preparer and reviewer sign-off of each run.
Review the result
Outputs and analysis
- Average implied value per shareMethods in the average
- Upside to the average implied valueAgainst the share price
- DCF value per shareSelected terminal method
- WACCUsed in the DCF
- rNPV per shareSum of the drugs
- Risk-adjusted NPV of the operationsMillions
- Cash runwayYears
- Dilution before the next readoutIf raised at today's price
- 11 additional metrics in the workspace
- Financial statements and free cash flowDetailed schedules
- Valuation, comparables and market evidenceDetailed schedules
Designed for review
Who this model is for
- Private-equity sponsors and corporate development teams
- Investment and financial analysts
- Transaction advisers
- Investment committees and lenders
Governed evidence
The review trail stays with the result.
Each completed calculation preserves the model version, saved inputs, reporting-currency snapshot, immutable run, and result fingerprint used for its reports.
- Version-controlled calculation logic
- Saved assumptions and scenarios
- Immutable calculation runs
- Reporting context preserved in exports
Ready to explore the case?