Vectura Plc: Evaluating the Effect of Product Success / Failure on Share Price

Torux Biotech together with Biostrategy Analytics have published an Analyst Report relating to Vectura Plc, a listed (LON:VEC) pharmaceutical company focused on Chronic Obstructive Pulmonary Disease (COPD) and Asthma indications. The report can be found in the link below: Vectura Report The aim of this report is to evaluate the effect of potential success / failure…… Continue reading Vectura Plc: Evaluating the Effect of Product Success / Failure on Share Price

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DCF and NPV Methods and the effect of initial sales and sales growth

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

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Viropharma Acquisition by Shire Pharmaceuticals: Was the price right?

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?

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Strategic Target Screening in M&A: When and How?

Acquisitions has been one of the major strategies for growth in several industries including pharmaceuticals and biotechnology. It is well-known that 3/4 of all acquisitions end up as failures. This article focuses on how to identify the right acquisition targets based on the company’s needs and future prospects. Before deciding to pursue an acquisition the…… Continue reading Strategic Target Screening in M&A: When and How?

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5 Ways to Boost your Company’s Stock Price

Stock Prices is the result of demand and supply forces in the capital markets. It is not necessarily linked with financial performance of the company, especially in the biotechnology sector. In fact, a significant amount of the biotech companies being acquired or after raising equity through an IPO (two of the main exit strategies) have…… Continue reading 5 Ways to Boost your Company’s Stock Price

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Pharmaceutical Industry Profile Report

You can download the Pharmaceutical Industry Profile report free of charge from the link below: Pharmaceutical Industry Report The report contains the following four chapters: Chapter 1: Global Pharmaceutical Market Chapter 2: Solutions to Challenges Chapter 3: Global Players Chapter 4: Overview of Industry Trends For any questions or recommendations do not hesitate to contact me.…… Continue reading Pharmaceutical Industry Profile Report

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A Simple VC Investment Model: What every Biotech Entrepreneur should know

Before reading this article, you can download the Excel version of the model from the link below: VC Financing Model – Revised All Entrepreneurs know that Venture Capitalists (VCs) want is two main things: (i) Return and (ii) Control. They want return because they have invested in a company that operates in one of the…… Continue reading A Simple VC Investment Model: What every Biotech Entrepreneur should know

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Valuation of Pharmaceutical and Biotechnology Companies: Comparable Transactions Method (Part 3)

In this article the Comparable Transactions Method (CTM) is discussed. In CTM the valuation of the company is based on the answering the following question: If the company was sold are there any similar transactions have taken place under similar conditions? Could these transactions be used in a comparative manner in the valuation of the…… Continue reading Valuation of Pharmaceutical and Biotechnology Companies: Comparable Transactions Method (Part 3)

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Valuation of Pharmaceutical and Biotechnology Companies: Comparable Multiples Method (Part 2)

In this article the Comparable Multiples Method (CMM) is discussed and analysed. CMM is based on a relatively basic principle; that the value of the target company (the company to be valued) can be derived through certain multiples (financial ratios) of similar (comparable) companies. Step 1: Analysis of the Target Company There are certain data that…… Continue reading Valuation of Pharmaceutical and Biotechnology Companies: Comparable Multiples Method (Part 2)

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Valuation of Pharmaceutical and Biotechnology Companies: DCF (Part 1)

As most Finance professionals say valuation is more like an Art rather than Science. There are various valuation methodologies that one could apply in order to determine the value of a company. The main methods are: Discounted Cash Flow (DCF), Comparable Multiples Method (CMM), Comparable Transactions (CT) and Real Options (less common). DCF incorporates the…… Continue reading Valuation of Pharmaceutical and Biotechnology Companies: DCF (Part 1)

Business models in the pharmaceutical industry: The case of Novo Nordisk

(ARKIV) Novo Nordisk i Bagsværd, den 1. februar 2017. Lad dig ikke forblænde af trygheden ved velkendte danske virksomheder. Det er vigtigt at sprede sin investering ud over det danske marked. ** Historierne er klausuleret til lørdag. Fakta følger. Artiklerne udsendes til PFS-kunder mandag. Historierne må publiceres bag paywall lørdag kl. 06.00. **. (Foto: Liselotte Sabroe/Ritzau Scanpix)

A business model demonstrates how a company delivers and captures value for its customers. It is one of the most significant factors determining the success of a company’s strategy, especially in the pharmaceutical industry. There exist various business models, which a start-up firm can choose for its short and long-term future. The main categories of…… Continue reading Business models in the pharmaceutical industry: The case of Novo Nordisk

R&D Productivity: Winners and Losers

Measuring R&D productivity and innovation has been a historical issue in the pharmaceutical industry. From the concept of creative destruction developed by Schumpeter to the idea of disruptive innovation by Clayton Christensen, no one has been able to adequately define R&D productivity, especially innovation let alone quantify it. The pharmaceutical industry has suffered from lack…… Continue reading R&D Productivity: Winners and Losers

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