Project valuation in life science

Project valuation in relation to partnering, investment decisions or portfolio management is a challenging exercise. You have to predict and make decisions about the future market potential of your products that will have a major impact on shareholder value. Your decision-making will be highly influenced by key value drivers and their dynamics such as:

  • Target profile of the product
  • Probability of success
  • Patient population, which becomes more and more segmented and diverse
  • Competitive landscape with generics and new products entering the market
  • Marketing effort and effectiveness
  • Treatment pattern (dosing, compliance and persistence)
  • Price strategy, reimbursement and government regulations

Understanding the key value drivers and their dynamics for the market potential of your product is essential for making good investment and partnering decisions and increasing shareholder value. You could miss significant opportunities by choosing projects with less market potential or making deals without exploring the full market potential of your product. On the other hand, you could fund projects or make deals that will erode shareholder value.

Xplico has extensive expertise in the discipline of real-life valuation work. Based on our many years of valuation experience and input from the life science industry we have developed a valuation tool with integrated risk assessment and powerful analysis features to support your decision-making and increase shareholder value. Your benefits will be:

  • Valid support that strengthens your decision-making
  • A structured process that raises the relevant questions
  • Analytical power to match big pharma’s valuation team
  • Optimization of your deal terms
  • High productivity and accuracy
  • Flexibility to cover the variation in your projects
  • Access to benchmark and market data
  • Access to our valuation support and expertise

As stated by some of our current customers:

Xplico Evaluator is an integrated part of our financial models and is used for valuation of single projects, deal making as well as valuation of the whole company. It is a sophisticated tool for the experienced user, yet easy to navigate in and transparent – no black box, which is good! Use Xplico for technical questions as well as a sparring partner, they give fast and valid feedback and there are many years of real-world experience to learn from.
Helle Størum, Business Development Manager, Zealand Pharma
Bavarian Nordic is using Xplico Evaluator to prepare licensing negotiations with potential partners. It’s really important to have a process that facilitates communication around the forecast, be it the assumptions, the results, caveats and the deal valuation. Having a solid and consistent process helps to lend a sense of confidence to the team who is discussing deal valuation with our partners. In addition we enjoyed Xplico expert support. Xplico quickly validated our efforts and supported us with hands on training when needed.
Jürgen Langhärig, Ph.D; M.B.A., VP Business Development, Bavarian Nordic
BioPorto has benefited from Xplico’s valuation tool during licensing negotiations with potential partners. The Xplico valuation tool has been helpful in visualizing the rather complex market situation and has added valuable analysis data to the process. Xplico has shown good market knowledge and given fast and valid support.
Frank Harder, CFO, BioPorto
Xplico has during a challenging process proposed and delivered a highly workable, easy-to-use and flexible solution for new product forecasting. They have shown good understanding of the market complexity and given excellent service during the whole time-frame.
Jørgen Dich, Director, International Market Research, Nycomed
The Xplico software has been an invaluable tool to help Embera, a development stage specialty pharma company, develop and maintain models for the various indications of EMB-001. The Xplico software provides and clear concise methodology to understand and value the market opportunities and the capital required to realize those opportunities based a set of assumptions that can be easily modified as assumptions change over time. The Xplico organization also provides great support for their product to ensure that we are utilizing the full capabilities for the software including their own deep experience modeling pharma/biotech product opportunties.
Bob Linke, Embera NeuroTherapeutics, Inc.
Bavarian Nordic is using Xplico Evaluator to prepare licensing negotiations with potential partners. It’s really important to have a process that facilitates communication around the forecast, be it the assumptions, the results, caveats and the deal valuation. Having a solid and consistent process helps to lend a sense of confidence to the team who is discussing deal valuation with our partners. In addition we enjoyed Xplico expert support. Xplico quickly validated our efforts and supported us with hands on training when needed.
Jürgen Langhärig, Ph.D; M.B.A., VP Business Development, Bavarian Nordic
We have found the Xplico platform to be a very capable and cost-effective solution for analyzing both internal and external licensing and product development opportunities.
H Casey Logan, Chief Business Officer, TRACON Pharmaceuticals, Inc
Oxford Biomedica has adopted Xplico Evaluator as a tool to evaluate internal and external assets. Xplico proved to be a flexible, robust valuation model with extensive analysis features and easy reporting module. I would highly recommend it even to those with extensive experience in valuations. It saves time and allows one to concentrate on other aspects of striking a deal.
Spiros Servos Ph.D, MBA,Director, Business Development, Oxford BioMedica (UK) Ltd
…in addition to the user-friendly Xplico Valuation-tool I have also been most satisfied with the easy access to individual ‘user-service’ provided by the Xplico consultants to enable me to quickly get the model up-and-running as well as to solve any potential difficulties or challenges underway while using the tool — highly recommendable!….
Morten Faester, Director Business Development, Medivir AB
Xplico has been instrumental in our recent licensing negotiations. It is easy to work with and the only tool I am aware of that integrates both the financial and commercial requirements of modeling the deal-making process specifically in pharma and biotech!
Heiner Pieper,Vice President BD & Licensing, PharmaMar SA
I have been using Xplico for over one year now and it has proven to be a very useful tool for designing transactions and product valuations. The support of Xplico is fast and to the point. All in all, a great tool!
Hans Preusting, CBO, uniQure
4SC is using Xplico Evaluator to analyse and valuate internal and external assets and product opportunities. The Xplico tool has proven to be well-structured and flexible with powerful analysis features and very useful outputs for presentation purposes. The tool is backed up by quick and valid support from Xplico. I can definitely recommend the tool to other biotech companies.
Dr. Manfred Groeppel, Director Business Development, 4SC AG
Please contact Xplico to learn more about our easy approach to project valuation and how we can support you in strengthening your decision-making and increasing your shareholder value.