Biotech Sum of the Parts Valuation

What You’ll Learn

• Want to value a clinical-stage, pre-revenue biotech? An ordinary discounted cash flow analysis won’t cut it. Instead, you need to build a long-range sum-of-the-parts valuation.
• This 60-minute video short course + model template bridges the gap between academics and the real world and equips trainees with the practical modeling skill set needed to build a biotech SOTP Valuation.
• This course assumes no prior knowledge in biotech company valuation.
• Excel Model Template Included: A biotech sum-of-the-parts (SOTP) model template is included with this course

This biotech sum-of-the-parts valuation course is designed for professionals and those pursing a career in the following finance careers:

• Investment Banking
• Venture Capital
• Private Equity
• + Anyone who wants to learn how professionals build a biotech-sum-of-the-parts valuation

Valuation sensitivities

Example: Blueprint Medicines Corp

Prerequisites

This course does not assume a prior background in Biotech or Healthcare. However, those who enroll should have an introductory knowledge of accounting (e.g. interaction of balance sheet, cash flow, and income statement) and proficiency in Excel. Students with no prior background in Accounting should enroll in the Accounting Crash Course. Students with limited experience using Excel should enroll in the Excel Crash Course.

Biotech Sum of the Parts Valuation

1 Biotech SOTP course welcome 2:23

2 Biotech SOTP introduction 2:23

3 Overview of a sum of the parts valuation 1:50

4 Major building blocks for a biotech SOTP 3:42

5 Model assumptions dashboard 2:25

6 Biotech company lifecycle 5:40

7 Identify peak revenue opportunity 4:18

8 Therapeutic areas overview 1:05

9 Product launch timing and uptake curve 4:27

10 Patent life and loss of exclusivity 2:22

11 Road to commercialization 1:48

12 FDA clinical trials 9:32

13 Building a commercial infrastructure 3:04

14 Completing the SOTP 0:17

15 Probability of success 3:45

16 Build out one part of the SOTP (Product #1) 17:35

17 Finalizing the valuation model 1:29

18 Valuation sensitivities 5:19

19 Example: Blueprint Medicines Corp 4:41