Challenge:
A clinical stage biotech company developing treatments for Alzheimer's disease was looking for a valuation of its Phase II-ready therapeutic drug. The drug was a re-purposed combination of two known drugs with a well-documented safety profile, however unlike most other Alzheimer's drugs in development, it was part of a small pool of pipeline drugs that claimed to be disease-modifying, and in particular its primary aim was to stop disease progression at the prodromal/mild disease stage.
The company was looking for Series A financing of $30m in venture investment in order to progress the drug through a Phase IIa clinical trial. To prepare for discussions with investors, Alacrita was asked to develop an independent valuation of the drug.
Solution:
Given the historical failures of Alzheimer's drug development and therefore lack of benchmarks for probability of technical success, developing a risk-adjusted valuation for this product was particularly challenging. Alacrita's Monte Carlo approach to pharma valuations proved to be useful in this case, as we were able to develop a valuation range that truly reflected the risk associated with Alzheimer's drug development whilst at the same time appreciating the potential value in a differentiated product with a known safety profile that could stop the disease at an early stage.
Learn More About Our CNS Expertise
We regularly consult with clients developing CNS therapeutics, as well as advise investors and BD teams on individual assets, pipelines and companies in this field. For more details on our expertise, please visit the below page or reach out.
Explore Our Valuation Services
As a multi-disciplinary firm, in addition to valuations, Alacrita’s expertise in product development, strategy, and commercialization, allows us to draw on important insights that other valuation firms may not have. Understanding the key value inflection points for a pipeline asset and defining an overall value for a technology or business is vital, especially in transaction negotiations and commercial strategy, and few valuation firms are as well-placed as we are to do so.