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Biotech Sum of the Parts Valuation

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Biotech Sum of the Parts Valuation

  •   21 Lessons
  •   1h 18m
  •   71,447 Students

Ideal for investment banking private equity and VC professionals focusing on the biotechnology industry, you will learn how to build a biotech-sum-of-the-parts valuation the way it's done on the job.

Real World "On the Job" Biotech SOTP Valuation

What You Will Learn

  • Market size and model potential revenue for a therapeutic asset in clinical development
  • Road-map the path to commercialization for a biotech through the FDA approval process
  • Apply the appropriate "probability of success”" to a clinical-stage pre-revenue biotech company
  • Apply key assumptions and tie together a long-range forecast of multiple products with a DCF analysis

Want to value a clinical-stage, pre-revenue biotech? An ordinary discounted cash flow analysis won’t cut it. Instead, you need to build a long-range sum-of-the-parts valuation.

This 60-minute video short course + model template bridges the gap between academics and the real world and equips trainees with the practical modeling skill set needed to build a biotech SOTP Valuation.

This course assumes no prior knowledge in biotech company valuation.

Excel Model Template Included: A biotech sum-of-the-parts (SOTP) model template is included with this course

This course is used to train new hires at:

Who is This Program For?

This biotech sum-of-the-parts valuation course is designed for professionals and those pursuing a career in the following finance careers:

  • Investment Banking
  • Venture Capital
  • Private Equity
  • Anyone who wants to learn how professionals build a biotech-sum-of-the-parts valuation

Course Extras

Taught by Bankers

Our instructors are former investment bankers who give lessons real-world context by connecting it to their experience on the desk.

Used on the Street

This is the same comprehensive course our corporate clients use to prepare their analysts and associates.

Free Unlimited Access to the WSP Support Center

Receive answers to questions, free downloads, and more from our staff of experienced investment bankers.

Course Samples

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Probability of Success
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Valuation Sensitivities
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Example: Blueprint Medicines Corp

Course TOC

Biotech Sum of the Parts Valuation
1. Biotech SOTP welcome 2:23
2. Biotech SOTP introduction 2:23
3. Course Downloads Files
4. Overview of a sum of the parts valuation 1:50
5. Major building blocks for a biotech SOTP 3:42
6. Model assumptions dashboard 2:25
7. Biotech company lifecycle 5:40
8. Identify peak revenue opportunity 4:18
9. Therapeutic areas overview 1:05
10. Product launch timing and uptake curve 4:27
11. Patent life and loss of exclusivity 2:22
12. Road to commercialization 1:48
13. FDA clinical trials 9:32
14. Building a commercial infrastructure 3:04
15. Completing the SOTP 0:17
16. Probability of success 3:45
17. Build out one part of the SOTP (Product #1) 17:35
18. Finalizing the valuation model 1:29
19. Valuation sensitivities 5:19
20. Example: Blueprint Medicines Corp 4:41
21. Biotech SOTP Course Review Quiz

Prerequisites

This course does not assume a prior background in Biotech or Healthcare. However, those who enroll should have an introductory knowledge of accounting (e.g. interaction of balance sheet, cash flow, and income statement) and proficiency in Excel. Students with no prior background in Accounting should enroll in the Accounting Crash Course. Students with limited experience using Excel should enroll in the Excel Crash Course.

Learner Feedback

Earn CPE Credits with WSP Online Courses

Wall Street Prep is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

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