In today’s financial climate, the survival of smaller companies is often dependent on their ability to do deals successfully with larger pharmaceutical companies. The Royalty Rate Report 2009: A Comprehensive Assessment of Valuation in the Pharmaceutical Sector, the latest report from PharmaVentures, provides expert guidance on critical aspects of deal-making, including valuations and royalty rate calculations.

Oxford, UK November 5, 2008 — In the current financial climate, the availability of venture capital will simply dry up, particularly for start-up biotech companies and those desperate for additional funding. This leaves many vulnerable companies with a critical need for cash, and their key to survival in the short-term will be deal-making with larger pharmaceutical and biotech companies. The market is now reacting to this depleted cash availability and so the terms of licensing deals are turning back in favour of those cash-rich pharmaceutical companies.

“For biotechs, protecting cash flow is key to survival, which means that licensing terms have become more crucial than ever before”, claims Fintan Walton, CEO of PharmaVentures, a leading transactions firm. In fact, managing both financial as well as clinical risk will be vitally important according to the recently published report from PharmaVentures, The Royalty Rate Report 2009: A Comprehensive Assessment of Valuation in the Pharmaceutical Sector. “The adoption of the correct valuation models can enable companies to derive better value from their deal-making in these financially challenging times. The Report sets out to provide essential assessment through the most powerful methodologies available, selected case studies and PharmaVentures consultants’ experience in deal making advisory services.”

Nigel Borshell, Editor of the Report, says, “In these important times, the Report explodes some of the myths of valuations and royalty rates calculations, highlights what you should factor in to your own calculations and explains how best to generate useful royalty rate outcomes. It does this by providing key case histories, deal analysis, and opinion leader comment all relating to the quest for better more useable valuation data.” A significant part of the content has been formulated by leveraging PharmaVentures’ 16 years of experience in assisting pharmaceutical and biotechnology companies worldwide in all aspects of deal-making.

Topics covered in the Report include:

  • Clear guidance on the best methodologies to use when calculating Valuations and Royalty Rates to assist with vital decision making
  • Opinions and advice from leading industry deal makers on how to calculate Royalty Rates
  • Contextual information – The report reviews the appropriate methodologies to use as part of the process to calculate Royalty Rates in-depth. It explores questions such as: “What do royalties mean in terms of value?” and “Where do royalties fit within the deal?”
  • More case studies – PharmaVentures highlights the issues and pitfalls

PharmaVentures has previously published three successful reports on royalty rates in the pharmaceutical industry. “However, this time we conducted even more extensive surveys and the 2009 Edition represents a complete rewrite”, says Fintan Walton, “and, judging by the excellent response from companies worldwide, it will, in short time, become the industry standard reference on the topic”. The new Royalty Rate Report is published under PharmaVentures’ imprint, PharmaDeals®.

According to Fintan Walton: “This report complements PharmaVentures’ insight and expertise to the industry on these issues particularly through our advisory services and our pan media offerings, PharmaDeals and PharmaTelevision.”

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