Marie Petit - Life Sciences valuation expert and partner at Villiger Valuation
The purpose of this workshop is to decrypt the reasons behind using rNPV or VC methodologies to value a Project or a Biotech company.
The risk-adjusted net present value (rNPV) method is the standard valuation method used within pharma and biotech companies when valuing assets beyond discovery stage. This approach depicts the drug/pipeline development plan using R&D costs & timeline, success rates, peak sales potential. Well-calibrated the rNPV method is thus a powerful tool to build, challenge and value the company’s strategy. It also shows how the value of the company develops along reaching milestones. Is it however enough to secure fundraising and partnering opportunities?
From an investor’s perspective it is crucial to understand how long it takes before an exit and what is the potential for ROI (Return on Investment). They need to figure out the conditions to harvest their investment as well as to anticipate the multiple later-round investors and incentive packages to key employees that may dilute their stake.
From a partner’s perpective, the intrinsic Target Product Profile of a Project is not enough to ink a deal. Before and beyond computing any rNPV the Project has to match certain criteria. What actually means this “come back after Proof-of-Concept results” that biotech hear so often?
While rNPV highlights the roadmap for the scientific bet made by a company, the VC method highlights the one for the cash to be invested in.
In fundraising as much as in partnering, what is the key for the Value of Science to match the Value of Cash? Maybe we can call it Stage of Readiness…
The number of attendees is limited to 30 maximum; please register early.