Solution

Situation

Challenge

Two scenarios evaluating the project as either a generic drug or a super generic drug were deemed as the most realistic.

The financial valuation was therefore made for both of the scenarios, based on the value in three distinct geographical markets; Europe, North America and rest of world (ROW).

NPV’s for all markets and both scenarios were calculated based on the developed model, thereby giving the client both a strategic input to the future negotiations as well as a baseline for negotiating the price of the project.

A British biotech company had developed an improved delivery system for an active pharmaceutical ingredient used in treating a skin disease.

They were heading towards negotiations with several larger partners and wished to evaluate the financial implications for different strategic scenarios.

TTO was given the assignment of developing a financial tool that could be used for simulating implications from the different scenarios and therefore used during the negotiations.

Based on a range of real options, TTO developed a model for assessing a range of strategic scenarios according to parameters such as IP situation, geographical markets, partnering company, etc.

The scenarios were incorporated into a financial valuation model and through comprehensive sensitivity analysis the estimated value of the project was assessed.