Challenge
Our client was a privately-held US biotech company developing a proprietary platform technology for in vivo expression of DNA coding for a therapeutic antibody or protein. The approach involves direct injection of plasmid DNA into muscle cells using electroporation. The company was looking to raise additional private investment and required an objective valuation to support the fund raise.
Solution
The Alacrita team considered 2 approaches for enterprise valuation.
First, a bottom-up risk-adjusted NPV analyses were performed for active R&D programs aginst 3 distinct indications. This involved development of a Target Product Profile for each program and cost-time-POS-revenue assumptions for development and commercialization. One of the indications involved non-dilutive funding from a federal body, and there was cost sharing on platform CMC and process development. We also estimated platform value using an expected deals approach, whereby discounted cashflows from future drug discovery and development partnerships were quantified.
In addition to providing material to support an investor pitch, the analysis highlighted valuable insights which the client could act upon (e.g. prioritizing the lead indications, value sensitivities by indication, and need for COGs reduction).
Valuations
Our expertise in performing business and asset valuations covers a wide range of technology types and disease indications. Led by ex-biotech executives with more than 30 years of experience, we develop in-depth valuation models for our clients, helping inform strategic decision-making and investments.
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