In our earlier post on valuation, we had discussed whether one should use the licensor’s or licensee’s cost of capital during out licensing. In this issue, we elaborate on the implications of using wrong discount rates. Let’s assume a hypothetical company A…
Which side of the balance sheet creates Value? This is an interesting question. While valuing a company, one always tends to focus on equity or debt side. However we forget the fundamental fact that the value of any business always…
I was working on the valuation of a biotech product in Dec 2012. I was almost done with all the cash flows and discount rates and I was about to calculate the net present value when one of my colleagues…
The casual answer to this question seems obvious, we would say “Yes”. Markets in these countries offer very favourable growth, usually double-digit, and their populations are several times larger than that of countries within the EU. Consider, for example, a…
I had an interesting discussion with one of the biotech entrepreneurs last week. He was curious to see that when he discusses the value of his product with the VCs, he gets a very different value. On the other hand…
La respuesta ”a bote pronto” a esta pregunta parece evidente, diríamos que Sí. Los mercados en estos paises ofrecen crecimientos muy importantes, normalmente de doble digito, siendo sus poblaciones varias veces superiores a la de paises de la EU, por…
These were the exact words from the management of a biotech company based in an emerging market when we were negotiating a deal with them. The company was supposed to in license the product, develop it and launch in its…
La respuesta ”a bote pronto” a esta pregunta parece evidente, dir?amos que S?. Los mercados en estos pa?ses ofrecen crecimientos muy importantes, normalmente de doble d?gito, siendo sus poblaciones varias veces superiores a la de pa?ses de la EU, por…
Risk is an integral part of valuation. When we try to value a company or equity, we use the cost of capital or the cost of equity as the discount rate. For equity investors, the cost of equity is the…
Following the Wold Health Organisation?s approval of India?s vaccine regulatory system two weeks ago there has been much speculation over what the future holds for India?s Vaccine Industry. By achieving WHO approval the Industry has reached an important milestone that projects a bright…