Challenge
An investment firm required independent valuations of five therapeutics within two of its portfolio companies, including four preclinical programs and a proprietary formulation of a clinical stage lipid-based pro-drug positioned as a radio-sensitizer for solid tumor radiotherapy.
Solution
For the preclinical stage programs, Alacrita undertook a comparables analysis; a suitable approach given all four programs were pre-development stage (e.g., no formal tox studies had been carried out) and thus it was difficult to accurately predict the remaining costs and time to a full development program. We compared the assets to comparable competitor pipeline products by stage of development, modality and indication, using our knowledge and expertise to identify appropriate benchmark programs.
For the clinical stage asset, Alacrita used its in-house proprietary rNPV approach based on discounted cash flow analysis. Using key input assumptions, provided by the target company and Alacrita’s in-house expertise, such as market share, drug pricing, development costs and timelines, probability of technical success, we developed projections for the addressable market and associated product revenues in the major markets (e.g., US & EU5) for two target indications.
Valuations
Our expertise in performing business and asset valuations covers a wide range of technology types including small molecules, biologics and cell and gene therapies. Valuations have been a staple of our practice since our inception in 2009.
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