The Pharma Product/ Technology/ Company Valuation

Case Study: The Pharma Product/ Technology/ Company Valuation

The Pharma Product/ Technology/ Company Valuation Challenge

A US specialist drug delivery company needed urgently to get a valuation of a potential acquisition candidate company. With its delivery technology the candidate company held a strong IP position in an undeveloped but emerging market area. The challenge was to understand fully the potential for the technology, find and evaluate benchmark comparable transactions to assist in the valuation and negotiation process.

The Solution

PharmaVentures undertook an in depth assessment of the drug delivery landscape to help position the underlying technology alongside competitors, and investigated the unique potential offered by the IP held by the target company.

A detailed search was then carried out using PharmaDeals Agreements® followed by a critical selection of the relevant benchmark deals using PharmaVentures extensive in-house expertise in drug delivery technologies and valuation criteria in this dynamic field.

The final valuation gave our client confidence about the acquired technologies’ potential and provided the expert basis for the deal negotiation.

Pharma Transactions, Deal Negotiations

Case Study: Pharma Transactions, Deal Negotiations

The Pharma Transactions Challenge

A large corporation planned to sell one of its key technology platforms and the compound originating from the Intellectual Property.

The client asked PharmaVentures to generate a pharma transaction process and close a deal with the highest bidder for the opportunity.

The Solution

PharmaVentures conducted a thorough company screening and evaluation assessment to identify and prioritise potential acquirers with a good match for the technology and a strong strategic need in the relevant therapy area. Following the screening, within the space of a month PharmaVentures’ transaction team approached all the target companies with the value proposition using a non-confidential information memorandum and the consultants thorough knowledge of the scientific area.

After the exchange of Confidential Disclosure Agreements this was followed by due diligence, technical communication and road show run by the transaction experts on behalf of the client company management. This process achieved several high bids and a final attractive transaction value within six months of start of the project.

Partner / Product / Technology Screening

Case Study: Partner/ Product/ Technology Screening

The Challenge

A medium sized specialty pharma company was looking to expand its pipeline of product candidates using innovative drug delivery technologies. Having obtained funds for expansion the client wanted to screen out the most attractive products matching their core technology competencies and target markets.

The Solution

PharmaVentures designed a study combining primary and secondary research to assess unmet medical needs that the core technology could service as well as map out the competitive landscape in R&D to see the expected market shares of competitors and the clients potential products.

With the research highlighting key drivers for new technologies, PharmaVentures selected 15 product opportunities for in-licensing or in-house development with detailed evaluation of probable risks and returns.

Pharma Deal Strategy, Deal Structuring

Case Study: Pharma Deal Strategy, Deal Structuring

The Pharma Deal Strategy Challenge

A mid-sized life sciences manufacturing company with new cell lines developed a novel pipeline and they sought the partnership of a global or several regional pharmaceutical companies with strong competencies in clinical development and marketing in the focus therapy areas. However, the company had no clear understanding regarding the value the selected compounds were worth and how that value should be shared with their future partners.

The Solution

Following a detailed valuation phase, PharmaVentures conducted a comprehensive pharma deal strategy benchmarking analysis using PharmaDeals Agreements proprietary data to evaluate the possible deal outcomes and to identify three deal structures for the client: “Optimal”, “Fall-back” and “Walk-away” positions.

The developed deal structures were assessed for returns to the client across the life cycle of the products as well as regional versus global partnerships.

Life Sciences Valuation

Case Study: Life Sciences Valuation

The Life Sciences Valuation Challenge

A large diversified chemical company made a strategic decision to potentially divest one of its pharmaceutical related business units that lay outside its core strengths. In order to understand the potential sales returns and to develop a sales strategy, it needed to provide a life sciences valuation of the complex business.

The Solution

The valuation started with a due diligence phase when PharmaVentures investigated all the components of value including the markets, the manufacturing capabilities/facilities, the patents, the scientific skills, the impact of investments on future revenue streams and profitability. Furthermore, PharmaVentures developed a financial model using discounted cash-flow/expected net present value calculations. Potential divestment scenarios (outright sale, medium term earn-out) were also considered.

The client used the outputs to confidently seek out appropriate buyers and negotiate the most attractive terms.