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?
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
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
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
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)
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)
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
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
Regenerative Medicine Market: The future in Life Sciences or just another promise?
Regenerative medicine (RM) is one of the most innovative technologies that might prove to have a significant added value in healthcare. I will start with some scientific definitions and then move into the business area. RM is an interdisciplinary field involving tissue engineering and (stem) cell therapy. Stem cells are undifferentiated cells (i.e. they have…… Continue reading Regenerative Medicine Market: The future in Life Sciences or just another promise?
Oncology Market: Drivers and Challenges
As pharma celebrates its 16-year high NME approvals, productivity of certain disease areas including oncology certainly fall behind. Oncology diseases are the most complex in terms of research and development. At the research stage, target identification has been a major challenge due to the high toxicity of potential drug candidates. At the development stage, pharma…… Continue reading Oncology Market: Drivers and Challenges
Can biotech Mergers and Acquisitions save big pharma?
A question that seeks answer in view of the challenges that the pharma industry is currently facing globally and specially in Europe. Pharma has to find ways in order to improve Research and Development (R&D) productivity by reducing development time frames, R&D costs and increasing the chances of success from pre-clinical phases to market launch.…… Continue reading Can biotech Mergers and Acquisitions save big pharma?