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Financial Modelling | Valuation
Next course: 15th-16th May 2017, London
A two-day intensive course which provides a hands-on guide to understanding, developing and employing financial models as a framework for valuing and negotiating pharmaceutical business development deals.
The financial concepts and calculations are presented as part of a real life case study of a co-development and licensing deal between a biotech and a pharmaceutical company. The delegates are expected to have a basic understanding of Excel and will be shown how to develop a valuation model and how to use it in negotiations.
Introduction to the Case Study
- Biotech and pharmaceutical company profiles, strategy and financial objectives
- Review of company P&L, balance sheet and cash flow, biotech funding, burn rate and revenue recognition
- Investor expectations, news flow and analysts’ reports
Forecast profit and loss and cash flow
- Structure and content of the Excel model to value and set deal terms for the product opportunity
- Sales forecasting: epidemiology and market data, product life cycle and pricing
- Operating costs: cost of goods, R&D and Sales and Marketing
- Accounting methods
- Discount rates, discounted cash flow, NPV and IRR
- Risk adjusted valuation methods including decision trees
- Equity, milestones, development costs, supply profits and royalties
- Share of NPV and other profit sharing methods
- Risk management in the legal agreement
Other business development deals
- Product acquisition valuation
- Co-promotion valuation and issues
- Biotech company valuation