Biotech valuation calculator

Basic info

We'll start by adding basic info about your pipeline.

This will allow us to calculate your preliminary valuation range based on comparable companies.

First, add your company name and the last funding round you raised.

Category	Default value	Input
Company name (optional)	Therapeutics Company
Last funding round raised (optional)		Seed Series A Series B Series C Series D Series E Late stage private IPO Follow-on public offering

We'll start by adding basic information about your pipeline.

We use this information to estimate the probability of clinical success, cost of your clinical trials, and other items.

You can value one program with the free version. Adding products or indications requires a subscription

Product 1

Category	Default value	Input
Product name	Product 1
Patent expiry year	2047
Therapeutic modality	Product 1	Small molecule Monoclonal antibody Antibody-drug conjugate Antibody oligonucleotide conjugate Antisense oligonucleotide Bispecific antibody Cell therapy Cytokine Exosome therapeutic Fusion protein Gene editing Gene therapy Glycan Hormone Microbial therapy mRNA therapy Peptide Polymer Protein Radiopharmaceutical siRNA Vaccine Viral therapy Enzyme Peptide-small molecule Oligonucleotide therapy Antibody-enzyme fusion protein saRNA Phage therapy
Target	KRAS
Indication 1 Delete indication	Indication 1
Indication 1 stage	Target-to-hit	Target-to-hit Hit-to-lead Lead optimization Preclinical development Phase 1 Phase 2 Phase 3 FDA submission Commercial

+ Add an indication

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Add a product

Initial valuation

Your preliminary enterprise value is

Don't worry if this preliminary value seems high or low -- it is just a starting point that will change throughout the process of building the model.

How do we calculate this?

We use a DCF analysis that is pre-populated with industry benchmarks.

Next, we will review these placeholder assumptions to make sure the model captures the value of your company.

We've seeded the model with industry benchmarks. For many inputs, these benchmarks are fine as-is.

But there are some assumptions that you'll want to customize. The more that you research the right assumptions for your business, the better the model will capture your company's true value.

We will walk through these assumptions, roughly in order of importance. You can jump around at any time by clicking the categories in the left column.

At any time, you can click Update valuation in the lefthand column to see your current valuation.

When you are done with your inputs, click Get valuation report to see an analysis of your valuation. You can also download an excel version at any time.

If you have questions, feel free to email us. Let's get started!

The data in this section calculate the cost of developing your programs, including the probability of success at each development stage.

The default assumptions come from commonly cited studies and analyses of clinical trial success rates.

If a stage does not apply to your product (i.e. getting accelerated approval post-Phase 2 and skipping P3), enter 0 for the time and cost of the stage, and 100% for p(TS))

Product 1

Indication 1

Pre-human studies

Category	Default value	Input
Target-to-hit cost	$2.1M
Target-to-hit time	1 years
Target-to-hit p(TS)	80%
Hit-to-lead cost	$5.3M
Hit-to-lead time	2 years
Hit-to-lead p(TS)	75%
Lead optimization cost	$21.0M
Lead optimization time	2 years
Lead optimization p(TS)	85%
Preclinical development cost	$10.5M
Preclinical development time	1 years
Preclinical development p(TS)	69%

Indication 1

Human studies

Category	Default value	Input
Phase 1 cost	$34.7M
Phase 1 time	2 years
Phase 1 p(TS)	60%
Phase 2 cost	$80.4M
Phase 2 time	2 years
Phase 2 p(TS)	36%
Phase 3 cost	$350.2M
Phase 3 time	3 years
Phase 3 p(TS)	62%
FDA submission cost	$54.9M
FDA submission time	1 years
FDA submission p(TS)	90%

Next: add revenue assumptions

The items in this section are used to calculate how much revenue your programs will generate. These assumptions are not based on benchmarks. You will need to add your own assumptions about price and patients treated.

If you haven't already researched the patient population for your programs, you'll need to do that now. If you aren't familiar with how to do these revenue builds, click the tooltip icon for more info .

Revenue build basics

Product 1

Category	Default value	Input
Price in year product is launched	$50,000
Annual price increase %	5%

Product 1

Indication 1

Category	Default value	Input
Peak patients treated / year	50,000
Years from launch to peak sales	5 years

P&L costs and expenses

This section covers expenses.

This includes standard income statement items like Cost of Goods Sold (COGS), Selling, General and Administrative expenses (SG&A), and taxes, as well as biopharma-specific items like Gross-to-net discount, platform R&D and launch costs.

With the exception of platform R&D, these assumptions come from industry benchmarks. Gross-to-net discount values may be higher than 10% for many drugs, especially higher priced products.

Category	Default value	Input
COGS % of sales	10%
Gross-to-net discount	10%
SG&A % of sales	30%
Tax rate	20%

Annual platform R&D

Calculated as max of 1) % of sales or "Platform R&D in year 1" * growth rate

Category	Default value	Input
Platform R&D in year 1 ($M)	$10M
Annual % growth in platform R&D	5%
Platform R&D % sales	5%

Launch costs (SG&A)

Launch costs are in addition to the SG&A expense defined above. Launch costs are based on industry benchmarks.

Product 1

Indication 1

Category	Default value	Input
Launch year - 3 ($M)	$25M
Launch year - 2 ($M)	$35M
Launch year - 1 ($M)	$75M
Launch year ($M)	$100M
Launch year + 1 ($M)	$100M

Cash flow and general corporate info

This is the last step! These assumptions are used to calculate your enterprise value, equity value, price per share, runway and other valuation metrics.

Don't worry too much about depreciation and working capital items. These are accounting items that are required for the DCF, but generally won't vary too much across companies.

Your capex assumptions can come from your own internal projections, or you can use our benchmarking data. One of the major variables impacting capex is whether you plan to build your own manufacturing, like many gene and cell therapy companies do.

One item deserving attention is platform value. This reflects the value of your company's technology that is not captured by specific pipeline products. It is difficult to value platforms. A common technique is to estimate platform value based on the enterprise value of comparable preclinical companies, but this is a very inexact technique. Another approach is to estimate the amount of new programs the platform can generate per year, and estimating the NPV of each program, but this method is also inaccurate and relies on highly uncertain assumptions.

The discount rate assumption is also very important. A discount rate of 10% is only appropriate for later-stage, mature companies. Small-mid-cap public companies may use discount rates of 12-18%, and higher discount rates may be appropriate for private companies.

General corporate info

Category	Default value	Input
First forecast year	2023
Discount rate	10%
Current cash balance ($M)	$0M
Current debt ($M)	$0M
Current shares outstanding (in millions)	10M
Platform value	$100M

Capex and depreciation

Capex calculated based on % of sales post-approval; otherwise grows at fixed rate per year

DCF does not include terminal value

Category	Default value	Input
Capex in year 1	1.0
Capex annual growth rate	5%
Capex % of sales	1%
PP&E useful life (years)	10
PP&E salvage value as % of original value	20%

Working capital

Category	Default value	Input
Accounts receivable % sales	15%
Inventory % of COGS	4%
Prepaid expenses % SG&A	1%
Other current assets % sales	1%
Accounts payable % COGS	20%
Accrued expenses & SG&A	12%
Other current liabilities % sales	1%

Valuation report

See the rightmost column for an analysis of your business' valuation and financials.

Click on each row to expand or hide the details.