Traditional financial analysis does not easily apply to the science and business of the Biotechnology firms. Biotech’s business is operating in a very complex and uncertain system and trying to determine the real value of their potential future product is certainly not an easy task.
Investors often would have to rely on the qualitative financial methods of the valuation. Typically, such qualitative analysis would focus on the following topics:
- Products Pipeline
- Patents to protect it’s technology
- R&D track record
- Management team talent and experiences
- Right partnerships for clinical trials and commercialization
- Financial records
All of the above topics are certainly a good way to get an insight into the Biotech’s potential, but it typically misses some important aspects of the industry, indication, patient population, competition assessment, etc.
At intilaris, we have combined our decades of experience in the Pharma industry with Systems Thinking approach to understand the complexity of the modern Drug Development R&D. The result is our Bio-Pharmaceutical New Product Assessment, that evaluates the potential of the future product through 27 interconnected indicators of the product value.
Such approach, not only enables the investors to get a comprehensive assessment of the product, but also the ability to rate it and compare it with the major competitors or current Standard of Care treatment.
With such a tool in the investors toolset, one would be able to make much more informed and objective decisions regarding their investments.