Biotech stocks have demonstrated enormous growth during the past few years (see: The U.S. Small and Mid-Cap Biotech Shines: Stocks on the Rise). The average stock return for biotechs was found to be over 40%, depending on the date of reference during the post-IPO period (see: Post-IPO performance of U.S. Biotechnology Companies). Biotech firms can generate huge stock…… Continue reading Venture Financing Trends in Biotech: A Decade of Healthy Investment Returns
Tag: Post
Do Scientists accept Management Processes?
Scientists’ acceptance or rejection of management processes has been historically a controversial issue not only at a corporate level but also at a research level. The method used by a researcher reveals the underlying theory associated with this method and determines to a certain extent the results obtained and hence, their interpretation. In order to frame…… Continue reading Do Scientists accept Management Processes?
Structuring and Developing an Effective Business Plan
Developing a Business Plan (BP) is a very frequent action when companies expect a shift in their strategic direction or desire to have a clearer path in the future. The hardest part in developing a BP is to form a realistic plan in terms of expectations. In addition, a BP shall be understandable and easy to explain to both internal and external stakeholders…… Continue reading Structuring and Developing an Effective Business Plan
A Primer on Determining the Appropriate Type of Investor for your Company
Investments are the principal growth driver of our global economy. The motive behind every investment shapes the investment deal structure and therefore plays a significant role on the outcome of every investment. This article highlights the main differences between strategic and financial buyers. Buyers can be classified as investment and corporate buyers. There exist general…… Continue reading A Primer on Determining the Appropriate Type of Investor for your Company
Common Mistakes in Valuation (Discounted Cash Flow)
Financial Modelling is both an art and science as it is not only based on Corporate Finance Theory but also on the ability of the Analyst to put theory in practice. This articles describes some common mistakes in Discounted Cash Flow (DCF) valuation, the principal method for valuing a business. Suggestions have been made to deal with these errors…… Continue reading Common Mistakes in Valuation (Discounted Cash Flow)
Pfizer AstraZeneca M&A Rumors – Is US$ 101 bn. the Right Price?
It is rumored that Pfizer will strike a US$ 101 bn. deal for acquiring AstraZeneca. AstraZeneca’s market capitalization prior to these rumors (17.04.2014) was US$ 80 bn. If these rumours are true it means that Pfizer is offering 25% premium over the market capitalization of AstraZeneca. Is this a fair price? Normally, the price offered…… Continue reading Pfizer AstraZeneca M&A Rumors – Is US$ 101 bn. the Right Price?
How to challenge your Company’s forecasts
Forecasting is a major challenge when it comes to budgeting, business planning or even valuation. In order for a Company to make future projections it has to have a good grasp of the market, its competitors as well as its own strengths and weaknesses. I have identified the following factors that a company executive can…… Continue reading How to challenge your Company’s forecasts
Post-IPO Performance of U.S. Biotechnology Companies
You can find my new article in the following link: Post-IPO Performance of U.S. Biotechnology Companies
The U.S. Small and Mid-Cap Biotech Shines: Stocks on the Rise
Biotech equities have sky-rocketed during 2013. As it is evident from the graph presented below, on Friday 3rd of January 2014, the NASDAQ Biotechnology Index closed at 2,373 a 58% rise compared to 1st of January 2013. Such growth was largely driven by companies that were listed in the stock market post-2007 that have no…… Continue reading The U.S. Small and Mid-Cap Biotech Shines: Stocks on the Rise
Vectura Plc: Evaluating the Effect of Product Success / Failure on Share Price
Torux Biotech together with Biostrategy Analytics have published an Analyst Report relating to Vectura Plc, a listed (LON:VEC) pharmaceutical company focused on Chronic Obstructive Pulmonary Disease (COPD) and Asthma indications. The report can be found in the link below: Vectura Report The aim of this report is to evaluate the effect of potential success / failure…… Continue reading Vectura Plc: Evaluating the Effect of Product Success / Failure on Share Price
DCF and NPV Methods and the effect of initial sales and sales growth
Before moving forward with subject of this article you may download the excel model from the link below: Early-stage Valuation Model Valuing start-up and early stage biotechnology companies is particularly difficult. In particular, early stage biotech and pharma companies have high sunk costs (i.e. fixed costs that cannot be recovered) and at the same time…… Continue reading DCF and NPV Methods and the effect of initial sales and sales growth
Viropharma Acquisition by Shire Pharmaceuticals: Was the price right?
Shire Pharmaceuticals acquired Viropharma for USD 4.2 bn. Was the price right? What does Comparable Multiples Method say? In order to determine whether the price was right, a sample of comparable (publicly listed) companies was collected together with their multiples (Figure 1). Values marked with red colour represent outliers. In Figure 2, the market value of…… Continue reading Viropharma Acquisition by Shire Pharmaceuticals: Was the price right?
Biostrategy Analytics 