Technology

The technology module values technologies that generate drug development projects. It is designed to value a company’s knowledge and capabilities that have not yet translated into tangible projects. Technology platforms or research know-how are valued within this module. Hard-to-assess future capabilities of biotech and pharma companies are easily valued this way. The concept of the technology feed rate is also used to replace the terminal value in company valuations. The technology module is used to:

• Calculate the value of a technology platform
• Elaborate a term sheet for a technology license
• Value the know-how of a company
• Prepare for a detailed company valuation
• Analyze the future pipeline composition
• Budget future R&D expenses not included in project plans

Functionality

Input parameters:

• Feed project (development project resulting from the technology as entered in project or license module)
• Feed rate (number of new projects resulting from the technology every year)
• Lifetime of the technology (years)
• Cost to maintain and exploit the technology (per year)

Results

• Value of the technology (rNPV, real option value)
• Value of the resulting future projects (rNPV, real option value)
• Risk profile
• Monte Carlo simulations
• Development timelines
• Report