Pharma Biotech Risk-Adjusted Valuation Model (Excel XLSX)

Financial Model presenting a business scenario of a Biopharmaceutical Company with a portfolio of 4 different types of drugs, each representing a potential market opportunity.

The model analyzes the NPV of each product using a Risk-Adjusted DCF Valuation methodology after taking into consideration the different development risks and probability of success across 5 different development phases (Preclinical, Phase I, Phase II, Phase III, Approval).

The NPV of each drug is added together along with various Operating Expenses and Financing Assumptions to produce Company's Consolidated Financial Statements and come up with Business Unlevered and Levered Return Metrics (rNPV, IRR, MOIC, etc.)

Revenue is earned either through direct sale of the product or through product licensing and is forecasted using assumptions on drug's potential market penetration, expected peak sales, sale price, royalty rates, etc.

The model includes Development timing assumptions per drug from Preclinical to Market phases, Research & Development Costs per drug and development phase, Pre and Post Market Capital Expenditures, direct and indirect Operating Expenses.

Finally the model provides a Venture Capital Valuation and Fundraising Analysis including Discounted Equity Value, Pre/Post Money Valuation, Fundraising per Investor (Invested Amount, FD Shares Outstanding, Share Price) and Investors Returns (Dividends Payout, Profit, IRR, MOIC).

The structure of the template follows Financial Modeling Best Practices principles and is fully customizable.

Model Structure:

•  General Setup
The General Setup tab contains all the high-level assumptions necessary for the overall functionality of the model including General Business Info, Timing and Currency, Depreciation & Amortization, Income Tax Rate, Working Capital, Group Level Other Revenue & OpEx, Financing and Valuation Assumptions

•  Products
Products development and revenue assumptions including Market penetration data, Sale Price, Sale Method (Direct or License), Development phases timing and costs, COGS & OpEx, Pre/Post Market Capital Expenditures, Probability of Success (POS) rates and LOA (Likelihood of Approval) calculation.

•  Capex
Assumptions for Foundation's Capital Expenditures and calculation of depreciation using the straight-line method

•  WACC & Comps
Calculation of Weighted Average Cost of Capital using Comparable Companies Table to calculate Beta.

•  Vaccines Analysis (4 worksheets)
Analysis of each Vaccine including Risk-Adjusted Forecast, Adjusted FCFF, Terminal Value and Unlevered Return Metrics (rNPV, IRR, MOIC, etc) and Supporting Schedules for R&D Risk-Adjusted Costs and Working Capital.

•  Group Consolidation
Group Level Consolidated Financial Statements built using 3 Statement Model.
It also includes several Financial Ratios, Company's Valuation (DCF, Terminal Value, Unlevered and Levered Cash Flows and Return Metrics) and Supporting Schedules for R&D investments, Fixed Assets & Depreciation, Working Capital, Debt & Equity.

•  Venture Capital Valuation
VC Valuation analysis including Discounted Equity Value, Pre/Post Money Valuation, Fundraising Analysis per Investor (Invested Amount, FD Shares Outstanding, Share Price) and Investors Returns (Dividends Payout, Profit, IRR, MOIC)

•  Dashboard
Presentation of key business figures using highly-sophisticated Charts & Graphs

•  Executive Summary Report
Company's Performance Summary designed to be easy to read, print, and save to pdf.

Help & Support

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