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A privately held biotech company was preparing its next financing round. Venture capital was willing to fund the venture, however, our client's management felt the suggested valuation was too low to fairly represent the company's assets. Therefore, we were asked to value the portfolio of R&D projects and to support the fundraising by defending the value vis-à-vis investors. Furthermore, our client wanted Bioscience Valuation to contact further potential investors and organize a road show.
Bioscience Valuation valued the company's projects as described in Approach:  project valuation and value-driven project management. As the company did not own any other assets the sum of the individual project values represented the value of the entire venture. Our client could neither launch nor market the final products as he did not have any marketing capabilities. It was also not planned to cover the entire value chain until launch – rather, our client's strategy was to license out after Phase II. As the licensor only receives a fraction of the projects' values, Bioscience Valuation analyzed and valued all licensing agreements that were in place. For the 'not yet' partnered products we made assumptions how a deal could be structured. As there are plenty of possibilities and many variables had uncertain values, a Monte Carlo simulation approach was chosen to value the company.
Furthermore, Bioscience Valuation supported the client in preparing the business plan and company presentation. Care was taken that beyond science, commercial and financial aspects were considered as well and explained in a clearly structured and convincing manner. Bioscience Valuation then contacted VCs and private equity funds and organized multiple presentations all over Europe. As a result of Bioscience Valuation's engagement, the client achieved it's financing goals at a valuation more than 150% above the original VC quotes.
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