{"product_id":"biotechnology-valuation-isbn-9780470511787","title":"Biotechnology Valuation","description":"\u003cul\u003e \u003cli\u003eThe first book to provide a simple and practical means of valuing biotech companies\u003c\/li\u003e \u003cli\u003eThe book begins with a short history of the biotechnology industry; this is important as although it is about 30 years old, the first company went public only in 1996, so it is possible to plot the course of investment waves and dips\u003c\/li\u003e \u003cli\u003eIt examines the European industry and its evolvement, and draws parallels between the similarities and differences between that and the US\u003c\/li\u003e \u003cli\u003eLooks at the various companies which make up the biotech industry (therapeutic; life sciences; and the medical technology company) and gives tools for the investor to properly evaluate them\u003c\/li\u003e \u003c\/ul\u003e \u003cb\u003ePraise for \u003ci\u003eBiotechnology Valuation\u003c\/i\u003e\u003c\/b\u003e  \u003cp\u003e\"Keegan states that the valuation of Biotech companies is as much an art as a science. This brief but comprehensive review of the skills and knowledge required, not of just the financial market and sentiment, but also of the technical attributes of a company and the drug development and regulatory hurdles that must be overcome, highlights the importance of the breadth of understanding required. Biotech investing is not for the timid, but it can bring substantial returns. Keegan's book, punctuated with his personal experience and opinions, is a good place to start.\"\u003cbr\u003e —\u003cb\u003eChris Blackwell\u003c\/b\u003e, Chief Executive, Vectura Group plc\u003c\/p\u003e \u003cp\u003e\"A user-friendly, yet thorough discussion of a notoriously difficult topic. Dr Keegan's book is a fine resource for both business types and academicians.\"\u003cbr\u003e —\u003cb\u003eSteve Winokur\u003c\/b\u003e, Managing Director, CanaccordAdams\u003c\/p\u003e \u003cp\u003e\"A highly readable and comprehensive explanation of the technical and commercial parameters that influence biotechnology companies at all stages of development, providing clear context for selection from the toolkit of valuation methodologies the author recommends to assess company and product performance, or ascribe value.\"\u003cbr\u003e —\u003cb\u003eDr L.M. Allan\u003c\/b\u003e, Director, Bioscience Enterprise Programme, University of Cambridge\u003c\/p\u003e \u003cp\u003e\"A fabulous approach to a difficult topic.\"\u003cbr\u003e —\u003cb\u003eDeirdre Y. Gillespie\u003c\/b\u003e, MD, President \u0026amp; CEO, La Jolla Pharmaceutical Company\u003c\/p\u003e \u003cp\u003eAcknowledgements xi\u003c\/p\u003e \u003cp\u003e\u003cb\u003e1 Introduction 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBiotechnology Background 5\u003c\/p\u003e \u003cp\u003e\u003cb\u003e2 Traditional Valuation Methods 11\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Value of a Company 11\u003c\/p\u003e \u003cp\u003eAccounts – Providing the Data for Valuation Analysis 12\u003c\/p\u003e \u003cp\u003eThe Income Statement 13\u003c\/p\u003e \u003cp\u003eBalance Sheet 17\u003c\/p\u003e \u003cp\u003eCash Flow Statement 20\u003c\/p\u003e \u003cp\u003eIncome Statement Multiples 22\u003c\/p\u003e \u003cp\u003eBalance Sheet Multiples 26\u003c\/p\u003e \u003cp\u003eSummary 27\u003c\/p\u003e \u003cp\u003eDiscounted Cash Flow Analysis 27\u003c\/p\u003e \u003cp\u003eNet Present Value 27\u003c\/p\u003e \u003cp\u003eConstructing the DCF 28\u003c\/p\u003e \u003cp\u003eProjecting the Cash Flow Stream 29\u003c\/p\u003e \u003cp\u003eChoosing a Discount Rate 30\u003c\/p\u003e \u003cp\u003eOther Thoughts 37\u003c\/p\u003e \u003cp\u003e\u003cb\u003e3 The Drug Development Process 39\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Drug Development Process 40\u003c\/p\u003e \u003cp\u003eDrug Discovery and Research 44\u003c\/p\u003e \u003cp\u003ePre-Clinical Development 44\u003c\/p\u003e \u003cp\u003eClinical Trials 48\u003c\/p\u003e \u003cp\u003eWhat Investors Should Look For When Analysing Clinical Trials 56\u003c\/p\u003e \u003cp\u003eConclusion 59\u003c\/p\u003e \u003cp\u003eThe Regulatory Process 59\u003c\/p\u003e \u003cp\u003eRegulation in the US 60\u003c\/p\u003e \u003cp\u003eRegulation in Europe 63\u003c\/p\u003e \u003cp\u003eThe Label 64\u003c\/p\u003e \u003cp\u003eTimelines for Approval 65\u003c\/p\u003e \u003cp\u003ePost Approval 65\u003c\/p\u003e \u003cp\u003eInvestment Lessons 66\u003c\/p\u003e \u003cp\u003eCase Study # 1 66\u003c\/p\u003e \u003cp\u003e\u003cb\u003e4 Biotechnology Company Valuation 69\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eData Collation 71\u003c\/p\u003e \u003cp\u003eNPV of the Pipeline 75\u003c\/p\u003e \u003cp\u003eCalculations 80\u003c\/p\u003e \u003cp\u003eSensitivity Analyses 86\u003c\/p\u003e \u003cp\u003eDCF of Whole Company 92\u003c\/p\u003e \u003cp\u003eEBIT DCF of Products 97\u003c\/p\u003e \u003cp\u003eComparables Valuation 99\u003c\/p\u003e \u003cp\u003eNPVs are Additive 101\u003c\/p\u003e \u003cp\u003eUsing all the Tools Available to Reach a Valuation Conclusion 101\u003c\/p\u003e \u003cp\u003eMarket Models 104\u003c\/p\u003e \u003cp\u003eConclusion 105\u003c\/p\u003e \u003cp\u003eAppendix 1 106\u003c\/p\u003e \u003cp\u003eExample 1 106\u003c\/p\u003e \u003cp\u003eExample 2 108\u003c\/p\u003e \u003cp\u003eExample 3 108\u003c\/p\u003e \u003cp\u003eAppendix 2 116\u003c\/p\u003e \u003cp\u003eBiosimilar Update 116\u003c\/p\u003e \u003cp\u003e\u003cb\u003e5 Decision Trees and Real Options 119\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDecision Trees 120\u003c\/p\u003e \u003cp\u003eDiscount Rate 124\u003c\/p\u003e \u003cp\u003eDeriving Scenarios 125\u003c\/p\u003e \u003cp\u003eConclusion 125\u003c\/p\u003e \u003cp\u003eDecision Tree Example 126\u003c\/p\u003e \u003cp\u003eReal Options 126\u003c\/p\u003e \u003cp\u003eValuing Options 129\u003c\/p\u003e \u003cp\u003eEstimation of the Input Variables 138\u003c\/p\u003e \u003cp\u003eConclusions 139\u003c\/p\u003e \u003cp\u003e\u003cb\u003e6 Biotechnology Investing 141\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTypes of Healthcare Investment 141\u003c\/p\u003e \u003cp\u003eBiotechnology Sector Evolution 143\u003c\/p\u003e \u003cp\u003eBiotechnology Investment Cycles 145\u003c\/p\u003e \u003cp\u003eBiotechnology Business Models 152\u003c\/p\u003e \u003cp\u003eFocus on People 154\u003c\/p\u003e \u003cp\u003eCash 155\u003c\/p\u003e \u003cp\u003eProduct Pipeline 155\u003c\/p\u003e \u003cp\u003eCommercial Risks 156\u003c\/p\u003e \u003cp\u003eNewsflow 158\u003c\/p\u003e \u003cp\u003eLessons from Biotech Investing 160\u003c\/p\u003e \u003cp\u003e\u003cb\u003e7 Early-stage Valuation 161\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePrivate Valuation 162\u003c\/p\u003e \u003cp\u003eDiscounted Cash Flow Method 166\u003c\/p\u003e \u003cp\u003eComparable Valuation 168\u003c\/p\u003e \u003cp\u003eVenture Capital Method 170\u003c\/p\u003e \u003cp\u003eDiscount Rates 173\u003c\/p\u003e \u003cp\u003eConclusion 173\u003c\/p\u003e \u003cp\u003eGlossary 175\u003c\/p\u003e \u003cp\u003eReferences 189\u003c\/p\u003e \u003cp\u003eIndex 193\u003c\/p\u003e \u003cb\u003eKARL KEEGAN\u003c\/b\u003e is currently a managing director and global head of life sciences equity research at CanaccordAdams, a global investment bank focussing on small to mid cap companies. Karl has been a financial analyst covering the biotechnology sector for over eleven years and has previously worked at Dresdner Kleinwort Benson, UBS and Banc of America. Karl and his team have been consistently highly ranked in institutional surveys throughout his career. Prior to embarking on his finance career, Karl completed postdoctoral assignments in the US and UK and worked in the pharmaceutical industry both as a bench scientist and in strategic planning. Dr. Keegan holds a BSc in Pharmacology from University College Dublin, Ireland, MPhil and PhD degrees in Pharmacology from University of Cambridge, UK and MSc in Finance from London Business School, UK. A native of Dublin, Ireland, he now lives in Kent, UK.  \u003cb\u003ePraise for \u003ci\u003eBiotechnology Valuation\u003c\/i\u003e\u003c\/b\u003e  \u003cp\u003e\"Keegan states that the valuation of Biotech companies is as much an art as a science. This brief but comprehensive review of the skills and knowledge required, not of just the financial market and sentiment, but also of the technical attributes of a company and the drug development and regulatory hurdles that must be overcome, highlights the importance of the breadth of understanding required. Biotech investing is not for the timid, but it can bring substantial returns. Keegan's book, punctuated with his personal experience and opinions, is a good place to start.\"\u003cbr\u003e —\u003cb\u003eChris Blackwell\u003c\/b\u003e, Chief Executive, Vectura Group plc\u003c\/p\u003e \u003cp\u003e\"A user-friendly, yet thorough discussion of a notoriously difficult topic. Dr Keegan's book is a fine resource for both business types and academicians.\"\u003cbr\u003e —\u003cb\u003eSteve Winokur\u003c\/b\u003e, Managing Director, CanaccordAdams\u003c\/p\u003e \u003cp\u003e\"A highly readable and comprehensive explanation of the technical and commercial parameters that influence biotechnology companies at all stages of development, providing clear context for selection from the toolkit of valuation methodologies the author recommends to assess company and product performance, or ascribe value.\"\u003cbr\u003e —\u003cb\u003eDr L.M. Allan\u003c\/b\u003e, Director, Bioscience Enterprise Programme, University of Cambridge\u003c\/p\u003e \u003cp\u003e\"A fabulous approach to a difficult topic.\"\u003cbr\u003e —\u003cb\u003eDeirdre Y. Gillespie\u003c\/b\u003e, MD, President \u0026amp; CEO, La Jolla Pharmaceutical Company\u003c\/p\u003e  \u003cp\u003eWritten by experienced financial analyst, Karl Keegan, \u003ci\u003eBiotechnology Valuation: An Introductory Guide\u003c\/i\u003e is a hands-on guide to the valuation of biotechnology companies both from a private and public market perspective for industry professionals, investors and students.\u003c\/p\u003e \u003cp\u003eFocused on product based biotechnology investments and drawing on the author’s extensive experience the book begins by valuing healthcare focussed biotechnology companies which are trying to develop new therapeutics using traditional valuation metrics for those readers unfamiliar with finance. The book then takes these principles and applies them to the unique aspects of biotechnology valuation. A background guide to the intricacies of drug development is provided including descriptions of the different clinical phases, relevant regulatory pathways and the attributes that contribute to make a successful drug. The financial analysis and the technical assessment are then combined to take the reader through multiple investment techniques that can applied for biotechnology company valuation including product NPVs, DCF valuation and real options analysis. Real world examples are used throughout the book to illuminate some of the softer aspects of valuation. The book also reviews the different methodologies used for valuing private companies in order to reduce risk and increase returns.\u003c\/p\u003e \u003cp\u003eBy highlighting some of the most common pitfalls of biotechnology valuation and providing a toolkit to establishing the value of a biotechnology company, \u003ci\u003eBiotechnology Valuation: An Introductory Guide\u003c\/i\u003e will enable the reader to develop a consistent approach and have a useful toolkit to tackle the valuation of a biotechnology company or individual drug, with confidence.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47988843249893,"sku":"NP9780470511787","price":108.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780470511787.jpg?v=1761781741","url":"https:\/\/k12savings.com\/products\/biotechnology-valuation-isbn-9780470511787","provider":"K12savings","version":"1.0","type":"link"}