Valuation & Financial Analysis

Valuing pharmaceutical or MedTech assets alone, in portfolios, or as a whole enterprise is challenging, as much of the value depends on future performance under a wide range of possible scenarios. Valuation is often required for transactions, whether trade deals, initial public offerings (IPOs), licensing, partnership or merger and acquisitions (M&A). Our leaders have supported companies from venture capital (VC) firms and private equity (PE) sale and IPO, through asset sales, corporate deals and partnering. We bring the analytical approaches to drive deals to closure and support negotiations through insights derived from valuation, as well as supporting companies who simply require valuations as benchmarks for comparison or platforms for corporate initiatives.

Asset Valuation: Influence diagram describing sources of uncertainty, parametric financial model to project cash flows, sensitivity analysis to measure the effect of uncertainty on prospects, Monte Carlo or decision tree analysis to combine individual uncertainties into a full-scope probabilistic valuation
Portfolio Valuation: The same range of methodology, together with assessing synergies and other cross-portfolio effects, analysis of risk concentration and fundamental drivers
Corporate Valuation: Include enterprise risk and concentration, financing and sources and uses of capital to reflect all factors affecting valuation
Financial analysis: In cases where valuation is not the primary objective, but financial analysis is required to make specific financing, corporate or strategic choices, we bring a full range of methodologies and experience to address multiple perspectives on performance, value and capital sourcing
Due Diligence: Required when valuing inbound assets

Valuation forms a part of most of our engagements, from identifying the effect of different TPPs on an asset’s value, through presenting the financial prospects for a VC-backed new venture in an IPO, to understanding the value contribution of corporate divisions to overall shareholder value.

Our Case Studies

Valuation to Support a Bidding Strategy of a PE Investor for an Acquisition

A global PE wished to acquire a $1B subsidiary of an MNC, whose value was driven primarily by the uncertainty around its lead asset. The asset contributed over 80% of revenue but faced a high-risk scenario of potential genericization. We valued the asset under several scenarios from no generic incursion to major competition, quantified the risks and developed mitigation strategies including fighter brands and product extensions.

Valuation of a Biosimilar for Partnering in the U.S. and EU5

An Asian insulin biosimilar manufacturer wished to launch its portfolio in the U.S. and Europe. We researched the market and developed a financial model to help them understand the value of their Phase II/III biosimilar portfolio, assessed partnership options and guided them in negotiations.

Valuation & Partnering Strategy for an Orphan Drug in the U.S. and EU5

A Japanese client had acquired the rights to a novel Phase II asset in an orphan disease. It required a valuation of its asset to support its development and partnering strategy for the U.S. and Europe. We developed a financial model based on market findings to capture the asset’s value and provided them with recommendations for partnership options.

Valuation to Support Corporate Portfolio Balancing

A global industrial company wished to increase its share value by rebalancing its portfolio of divisions in consumer, electronic components and healthcare. We developed corporate alternatives based on a shareholder value model and recommended exiting the electronics components business and doubling down on healthcare, leading to a series of acquisitions and a leading position in several segments.