Biotech Valuation

/Biotech Valuation

Log-transformed binomial model for valuation of multi-option investments

This model, assumed that there is risk neutrality and diffusion asset dynamics, has been shown how to approximate the underlying continuous diffusion process when there is a series of exercise prices and interactions between different options embedded in a single underlying asset. Valuing its option separately and adding up the individuals results is inappropriate since multiple options could possibly interact. Overall, the log-transformed binomial numerical model could be used for valuing complex multi-option investments. This [...]

January 27th, 2016|Biotech Valuation|0 Comments

Valuation of Pharma/Biotech Intellectual Property

It is known that intangible assets are long-lived and used in the production of goods and services, however they lack physical properties. In most of the cases, intangible assets represent legal rights or competitive advantages developed by a firm. For valuation purposes, intangible assets must be readily identifiable and separable from other assets in the firm. Intellectual property (IP) is a subset of intangible assets; the ability to determine the market value of IP is [...]

January 27th, 2016|Biotech Valuation|0 Comments