Wall Street Prep
Biotech Sum of the Parts Valuation

Biotech Sum of the Parts Valuation

Ideal for investment banking private equity and VC professionals focusing on the biotechnology industry, you will learn how to build a biotech-sum-of-the-parts valuation the way it's done on the job.

Real World "On the Job" Biotech SOTP Valuation

What You'll Learn
Market size and model potential revenue for a therapeutic asset in clinical development
Road-map the path to commercialization for a biotech through the FDA approval process
Apply the appropriate "probability of success”" to a clinical-stage pre-revenue biotech company
Apply key assumptions and tie together a long-range forecast of multiple products with a DCF analysis
  • Want to value a clinical-stage, pre-revenue biotech? An ordinary discounted cash flow analysis won’t cut it. Instead, you need to build a long-range sum-of-the-parts valuation.
  • This 60-minute video short course + model template bridges the gap between academics and the real world and equips trainees with the practical modeling skill set needed to build a biotech SOTP Valuation.
  • This course assumes no prior knowledge in biotech company valuation.
  • Excel Model Template Included: A Biotech Sum of the arts (SOTP) model template is included with this course

Who is this program for?

This course is designed for professionals and those pursing a career in the following finance careers:

  • Investment Banking
  • Venture Capital
  • Private Equity
  • + Anyone who wants to learn how professionals build a biotech-sum-of-the-parts valuation

Wall Street Prep’s Biotech Sum of the Parts Valuation is used at top financial institutions and business schools.

Course Samples

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Probability of success
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Valuation sensitivities
watch video
Example: Blueprint Medicines Corp

Prerequisites

This course does not assume a prior background in Biotech or Healthcare. However, those who enroll should have an introductory knowledge of accounting (e.g. interaction of balance sheet, cash flow, and income statement) and proficiency in Excel. Students with no prior background in Accounting should enroll in the Accounting Crash Course. Students with limited experience using Excel should enroll in the Excel Crash Course.

Course Extras

  • Taught by bankers

    Our instructors are former investment bankers who give lessons real-world context by connecting it to their experience on the desk.

  • Used on the Street

    This is the same comprehensive course our corporate clients use to prepare their analysts and associates.

  • Macabacus Excel Plugin

    6-month free access to the full version of Macabacus — an all-in-one suite of time-saving tools designed for people who build financial models in Excel.

  • Free Unlimited Access to the WSP Support Center

    Receive answers to questions, free downloads, and more from our staff of experienced investment bankers

Course Syllabus

1 Biotech sum of the parts welcome 2:23
2 Overview of a sum of the parts valuation 1:50
3 Major building blocks for a biotech SOTP 3:42
4 Model assumptions dashboard 2:25
5 Biotech company lifecycle 5:40
6 Identify peak revenue opportunity 4:18
7 Therapeutic areas overview 1:05
8 Product launch timing and uptake curve 4:27
9 Patent life and loss of exclusivity 2:22
10 Road to commercialization 1:48
11 FDA clinical trials 9:32
12 Building a commercial infrastructure 3:04
13 Completing the SOTP 0:17
14 Probability of success 3:45
15 Build out one part of the SOTP (Product #1) 17:35
16 Finalizing the valuation model 1:29
17 Valuation sensitivities 5:19
18 Example: Blueprint Medicines Corp 4:41
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