Must-Know Finance Concepts for Life Sciences Valuations, Part II

This whitepaper is a continuation of the first, entitled "Must-Know Finance Concepts for Life Sciences Valuations." It goes into more detail on the key concepts and most common methodologies used to evaluate life sciences assets.

Discussion topics in Part II include:

  • Which asset valuation methodology is most used by big pharma to evaluate possible partners or acquisitions?
  • An explanation of three fundamental concepts in valuation: risk-adjusted value, cost of capital and present value
  • What are some cash flow examples for a situation when the asset is early in the product lifecycle, for out-licensed, and for in-licensed products?
  • How do my expected deal terms relate to my forecast cash flows? How can I use this to make better decisions on licensing timing?

    If you are an entrepreneur who plans to raise (or currently is raising) financing, licensing an asset or selling your company, a private investor who wants to estimate and negotiate start-up share value, or any other professional who is active in the life sciences investing sector, you'll benefit from this more detailed explanation of life sciences valuation methodologies.



Company team

Jeff Karan

Co-Founder and Managing Partner of WaveEdge Capital

Jeff brings over 30 years of investment banking and corporate advisory experience to WaveEdge Capital. In addition to his extensive knowledge of capital raising and merger & acquisitions, Jeff has advised clients on corporate strategy, business valuation, and a wide range of strategic partnership structures. Learn More

Company team

John Selig

Co-Founder and Managing Partner of WaveEdge Capital

John advises life sciences companies on M&A, licensing and financial strategy. He teaches the valuation and finance module at BIO’s Executive Management course for BD professionals and at Stanford Medical School’s Entrepreneurship program. Learn More

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