Complexities in Biotechnology

Biotechnology companies face unique challenges when it comes to understanding the value of their assets.  During the early stages of development, an extraordinary level of time and effort is required in the research and discovery phase of future therapeutics.  Through this process, it is essential to understand the myriad of value impacting factors so that organizations can maximize the future potential of their efforts.  This need is exacerbated when one takes into account the significant risks and lengthy timelines associated with the development of certain therapies and devices; a deep understanding of the key value drivers can allow decision makers to make better decisions.  Factor in competitive forces, regulatory issues, reimbursement challenges, and patent protections, and life sciences companies are left with an even more difficult set of circumstances when trying to discern the value of their assets.

Why should I care?

Given the challenges facing biotechnology companies, understanding the intrinsic value of one’s assets is important.  If an early stage company is looking to raise funding or out-license its intellectual property, having a robust understanding of the economics of one’s assets is critical when going through a negotiation process.  Even at later stages of development, the need for understanding potential value is essential when trying to understand where to devote a company’s resources.  If it turns out that a company is focusing on the development of a certain therapeutic which may not realize a level of return commensurate with the required expenses, it could signal to a company that it should reallocate its resources.  Finally, when a company is initiating a sale process, there is a clear and obvious need for knowing the value of one’s company.  Often times, given the strength of company management, a banker may not be necessary during this process.  However, having a third-party analysis conducted to provide support during negotiations can be extremely powerful.

How can we help?

Trying to make sense of these issues requires a deep understanding of the biotechnology market, as well significant knowledge of how biotechnology companies operate.  Teknos Associates is uniquely positioned as a result of our significant experience working closely with biotechnology companies at all stages of development.  We have assisted organizations with valuations associated with future sales, examined the potential value of therapies to help guide companies in the allocation of their research and development efforts, and performed strategic analyses to assist in positioning companies for organic and inorganic growth.

To learn more, please view our presentation and contact us at info@teknosassociates.com .


Teknos Associates provides valuation and advisory services for emerging growth companies and their venture capital backers. Clients rely on our financial expertise, knowledge of technology markets, and high standards to deliver relevant and timely valuation reports, opinions, and analyses.


 

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