Valuation in Life Sciences

Abstract

In the following part we discuss how the theory outlined in the previous chapter is applied to valuation in life science. First we look at the input pa-rameters related to life science valuation and then at some special aspects, i.e. discounting, volatility and peak sales prediction, before moving on to the actual valuation. We start with the valuation of standard projects and then gradually move to the more complex problems. Every section in-cludes a case study to illustrate practically how to use the theory. The ex-ercises in the last part of the book complement the cases. Fundamentals In the following chapter the reader learns more about the data required for valuation in life sciences companies. We first discuss drug development and then medical device development. The chapter shall serve as a refer-ence for those readers not familiar with life science. For reasons of clarity, we have not included all publicly available data, but have generated a combination the user can apply to valuation.