Business and Science Valuation in Life Sciences A Practical Guide

Abstract

“Valuation in Life Sciences” (A Practical Guide) : Reviewed by Ajeet Agnihotry and Neel Kamal Sharma. Published by Springer, pp. 370, Price : $71.96 (Hardcover) Valuation is a hot topic among life sciences professionals. This book deals specifically with Valuation in Life Science. As this is the focus issue for anyone involved in business development like: industry professionals, investors, and academics. This book will be of immense value to strategic planning, licensing and business development, corporate finance professionals and senior managers in all sectors of the life sciences industry. This book is structured in five parts. In first part that is in introduction, Author discuss the role of players in life sciences industry and describe why valuation is important to them. The second part deals with the input parameters required for valuation in life sciences. In the third part author discuss the principles of valuation. The fourth part is the core of book and guides the readers through theoretical aspects and practical applications of valuation in life sciences. In the fifth part of the book contain exercises which reader can use as a template for future valuation. In this book, author has written that what is sure to become the industry standard reference for valuation of pharmaceutical and biotechnology projects and companies. This book provides an introduction both to the development of new medicines and to the techniques of financial investment appraisal. The combined talents of both the authors have produced an brilliant synthesis of the parameters and stakes of the Life Sciences field, integrating them successfully in the most sophisticated economic evaluation models. According to the authors, traditional approaches to assessing investment opportunities fall short in the pharmaceutical industry. At a time when the healthcare industry is placing increasing emphasis on licensing as a core strategy this book provides a firm understanding of the way in which products and businesses can be valued at all stages of their development, while their thorough treatment of quantitative approaches to the valuation of companies provides a solid theoretical and practical framework for all of those involved in financing the new generation of biotechnology companies. This book has quickly become the standard reference in the industry. Both the authors introduce the characteristics of medical device development and drug, explain how to translate these into the valuation, and provide valuable industry data. The book also contains abundant case studies and exercises which clearly exemplify the most difficult theories. Methods and models for the evaluation of projects and companies are carefully described and explained and will thus provide a practical and rational basis for negotiations. More sophisticated evaluation techniques are necessary, particularly in respect of the drug development process, intellectual property evaluation, licensing and sublicensing. The book presents a number of innovative ideas, illustrated with practical examples, that should improve decision–making in these areas. The authors make a convincing case for the use of advanced techniques and the section on worked–examples should be particularly interesting to practitioners. Unique importance is put on the practicability of the projected methods by including many hands–on examples, without compromising on practical results. There is no doubt that this book will become an essential reference tool for professionals in technology transfer, business developers and biotech companies, as well as the pharmaceutical industry and Life science investors.