PharmaVentures Training Workshops
A two day workshop on Calculating and Negotiating Financial Terms for Licensing Agreements -- 4-5 July 2012, Oxford UK
PharmaVentures are pleased to announce the return of its popular and authoritative workshop on calculating and negotiating financial terms for licensing agreements.
The purpose of the workshop is to introduce the current methods used by the industry for determining the value and financial terms of licensing agreements. The workshop will explore the various approaches used and will have a number of case studies and practical exercises. It will also include an opportunity to practice the negotiation of financial terms in a real face-to-face negotiation exercise.
View the workshop programme below.
There is a Special Early Bird Price for bookings received before 20 June 2012.
Delegates also receive their own personal copy of the report Approaches to Valuation of Pharmaceutical Licensing Deals, (worth £2,450/€2952/US$3852).
Learn:
- Current methods to determine value and financial terms for all drugs at all stages of development
- How to avoid the pit falls in determining value
- How to develop robust arguments for value
- Experience how to defend your valuation and financial terms through a live face-to-face negotiation experience
- How licensor and licensee differ in their perception of value
Past attendees:
- Over 500 delegates from around the world have attended in the past including:
- Pfizer, Roche, GlaxoSmithKline, Bayer, Boehringer Ingelheim, BMS, Lilly, Genentech, Merck and Co., plus numerous biotech companies from around the world.
Testimonials:
- "For someone new to business development...I got more than expected...The role-play was phenomenal.”
- "Actually, I had this workshop recommended highly to me by my colleagues... I was really impressed... Putting things into practice is when you really learn it."
- "Positive - 10,000 foot view; relevance to my role in the company."
- "Positive experience - great discussion of contemporary valuation challenges facing the industry."
- "I learned a huge amount about NPV and Excel and scenarios. A very positive experience."
Calculating the Financial Terms and Formulating Value
08.00 Welcome and Introduction
Introduction to Key Concepts in Valuation
ILLUSTRATED PRESENTATION
- What is value? Exploring the notion of fair market value
Experiences and Current Approaches to Valuation
GROUP DISCUSSION
Techniques in Valuation – Benchmarking
ILLUSTRATED PRESENTATION
- Rationale for benchmarking
- Information required and information sources
- Using precedents in valuing a proposed deal
- Market, product and deal related variables
- Strengths and limitations
Benchmarking
CASE STUDY
Techniques in Valuation – DCF and DTA Methods
ILLUSTRATED PRESENTATION
- Meaning of ‘contribution’
- Cash flow modelling: principles and methods
- Opportunity cost of capital and the need for discounting
- Discounted Cash Flow (DCF) modelling and Net Present Value (NPV)
- Decision Tree Analysis (DTA) and Expected Net Present Value (ENPV)
- Use of computer based spreadsheet models
- Use and interpretations of output data
- Strengths and limitations of the methods
Considerations in the Formulation of Proposed Financial Terms Presentation
PRESENTATION
Frameworks from finance theory for treating risk and strategic financial preferences of licensor and licensee
- Attitudes towards risk
- Diminishing marginal utility of wealth and risk-free equivalence
- Time preference, concept of utility, utility maximising position
- Impact of above in the negotiation of financial terms
Combined Application of DCF, DTA and Benchmarking Methods
CASE STUDY
Substantial case study drawn from pharmaceutical licensing. Working in teams, participants will apply the various techniques presented in combination to derive a valuation and proposed financial terms. The case study requires the use of spreadsheet modelling, DCF and DTA methods, benchmarking and various theoretical frameworks presented earlier.
12.30 Working Lunch
13.30 Presentations by Participants on case study
GROUP DISCUSSION
At the end of the exercise, teams will present their results to one another. This will be followed by a group discussion in which participants will be encouraged to reflect on their practical experiences in the case study and exchange views on the practical application of the techniques in real-life context.
Summary and Conclusions
GROUP DISCUSSION
Briefing for day two role-play
The Live Face to Face Negotiation for your Deal Teams
ROLE-PLAY EXERCISE FULL DAY
08.00 Introduction
Delegates will now have the opportunity to put into practise the techniques and ideas discussed by participating in a live, face-to-face role play negotiation between a large pharmaceutical company and a small biotech company.
Establishing Teams
Delegates will be divided into focused teams by the workshop leaders who will then establish tactics and strategies with the teams.
Scenarios and Team Preparations
The scenarios for the negotiation are revealed to the teams. Each team will work through their strategy for negotiation and prepare to meet their potential strategic partners.
The Face-to-Face Negotiation Continues
The teams will enter into a repeated number of face-to-face negotiations working to ‘heads of agreement’ on a specific alliance. During the negotiations changes will occur to circumstances similar to ‘real-case’ scenarios.
12.30 Lunch
The Face-to-Face Negotiation Continues
Debriefing and Presentation of Outcomes
Each team presents their experience in the negotiations leading to an open discussion on the negotiations and their respective outcomes.
Summary and Conclusions
The workshop leaders will draw discussions to a close with a summary and conclusion to the day’s activities.
16.30 Close
Special Early Bird Price for bookings received before 20 June 2012: £1755 / €2115 / US$ 2699
Usual price: £1950 / €2350 / US$ 2999