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…
The company ABC borrowed 50 M USD at 2% interest rate 3 years ago. What should be the cost of debt in calculating the cost of capital of the company? Should you use 2% as the cost of debt as…
In my last VIEW post, I discussed the difference between Cost of Capital of a project versus Cost of Capital of a company. In this post we understand whose discount rate we should use when valuing cash flows from out licensing. A…
The subject may sound strange but it is true that one encounters such instances in day to day business deals. I was part of one of the out licensing deals of my Client A, a biotech company that was interested…
I was discussing with one of my clients’ partner regarding the valuation of a biotech product. The product is supposed to be co-developed by both parties at the facilities of the partner in an emerging market.He argued that I should…
Do Intangible assets have different set of rules to value them? The answer is No. It’s only because of accounting rules that allow them to look differently. The accounting rules are consistent in their treatment of manufacturing companies but it…
Despite the fact that Valuation is subjective, there cannot be any argument on tweaking the fundamentals of Valuation – risk, growth and cash flows based on rules of thumb. That said, one could see many valuation reports floating around with…