CHALLENGES OF FAIR MARKET VALUATION
One of common challenges at the early stage of biotech ventures is to calculate realistic estimates of the value of technologies to bring investment for lengthy commercialization process. The valuation should adequately account for the novelty of discovery, market size and opportunity, time and cost of development and risk that the investor must bear on each phase of product development.
KEY FACTORS – INVESTMENT PERSPECTIVES
NOVELTY & IP
MARKET & OPPORTUNITY
COST & TIME OF DEVELOPMENT
REIMBURSEMENT STRATEGY
RISK
MANAGEMENT TEAM
rNPV | ROI
SUCCESS PROBABILITY BY DEVELOPMENT PHASE
- DISCOVERY ...%
- PRE-CLINICAL 9%
- PHASE 1 20%
- PHASE 2 29%
- PHASE 3 64%
- REGULATORY APPROVAL 85%



AVERAGE TIME TO COMPLETE (YR)