Valuation in the Life Sciences

This course is to provide students with specific valuation approaches to address the challenges of estimating value in the life sciences industry. Students will learn the theoretical aspects and practical applications of common and advanced valuation methods including standard discounted cash flow models, probabilistic valuation approaches, relative valuation models, and contingent claim models. Students will learn to assess the usability of various methods in valuing projects, license contracts, technologies, intellectual property, ventures, and companies in the life science industry.

ALS 350 and ALS 351

Understand the principles of valuation, the role of valuation and its specific challenges in the life science industry.

Identify and forecast the key input parameters required for valuation in the life science industry.

Develop theoretical and practical knowledge of the following valuation methods in the specific context of the life science industry:

Standard Discounted Cash Flow method
Risk-adjusted NPV approach
Decision tree analysis
Relative valuation
Real option valuation

Select and apply appropriate valuation techniques to estimate the value of the following in the life science industry:

R&D projects
License contracts
Technologies
Intellectual property
Ventures
Companies

Use sensitivity analysis, scenario analysis, and simulation analysis to assess and manage commercial risk and technical uncertainty in the life science industry.