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Early value assessments for Biotech companies

Optimise the upside value potential of your asset to advance investor’s interest

How can you put a reliable price tag on an asset that is just offering a promise of success in a 12-year time horizon involving high risk and high development costs within an ever-changing competitive environment? Biotech start-ups are in need of state-of-the-art valuation methods to convince potential investors of the real value of their assets down the road.

Early value assessment: predicting future value under uncertainty

Early-stage innovators will need to develop an accurate assessment of the probability of scientific, regulatory, and commercial success of the asset, in order to advance the interests of investors, which will allow these collaborative investor relationships to develop successfully.

Producing development programs with the ability to secure superior outcomes in the treated population of patients will determine competitive differentiation and sustainable advantage for the early-stage asset.

Your challenges

It really requires specialist expertise to move a candidate through development, clinical testing, formulation, regulatory submission, marketing approval, manufacturing certification, and market launch. Indeed, advancing a candidate from “bench to bedside” requires massive financial resources, as well as deep technical and commercial knowledge.

Some challenging questions to answer are:

How to improve the probability of success of your asset?

How to predict drug differentiation at early stage using published data from relevant comparators?

What is the optimal indication sequence strategy for your asset?

How to better inform effective clinical development programs and trials designs?

What is the justifiable price range for your asset to be cost-effective against relevant comparators?

How to better inform forecasting- and valuation models with reliable data and assumptions?

What are the key value drivers influencing the value story of your asset?

What is the market landscape your asset will enter and how will your asset provide value?

How to leverage your proprietary data with data from analogs to produce more reliable predictions?

Your benefits

Early value assessment is a powerful tool to demonstrate to investors the upside value potential of the asset. Armed with this information, early-stage innovators can better understand their own value story and be prepared to enter partnership discussions from a strong negotiation position, and to use this information to help maximise funding.

Please, don't hesitate to get in touch wiith the Deloitte’s HEOR & Market Access team to discuss your needs.

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