Month: November 2013

Before moving forward with subject of this article you may download the excel model from the link below: Early-stage Valuation Model Valuing start-up and early stage biotechnology companies is particularly difficult. In particular, early stage biotech and pharma companies have high sunk costs (i.e. fixed costs that cannot be recovered) and at the same time…… Continue reading DCF and NPV Methods and the effect of initial sales and sales growth

Shire Pharmaceuticals acquired Viropharma for USD 4.2 bn. Was the price right? What does Comparable Multiples Method say? In order to determine whether the price was right, a sample of comparable (publicly listed) companies was collected together with their multiples (Figure 1). Values marked with red colour represent outliers. In Figure 2, the market value of…… Continue reading Viropharma Acquisition by Shire Pharmaceuticals: Was the price right?