Valuation 2.0: How to Justify Biotech Value
Date: October 1, 2003 at 7:00pm
Cost: $20 at the door.
Location: Wilson Sonsini Goodrich and Rosati
950 Page Mill Road, Palo Alto
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Companies sell parts (technology, developments) or totals to buyers (Big Pharma, VCs, Investors). The market exercises a price pressure downwards, whereas the company wants to maximize the proceeds to move the entrepreneurial goals forward. Justification for price is necessary from a fundamental perspective but is challenged with risk from further development, which may lead to success or failure. Therefore, companies need tools to consider such risks, but still maximize the value, financial tools include option theory. In addition, value drivers and soft values need to be established to help spread the range of options in negotiations settings: The second best alternative.

o Trends in deal size and stage

o Methods of Valuation (What's the value ?) o Alternative valuation approaches (gut, comparables)
o Immaterial value drivers: The bells & whistles
o Setting the valuation range o Valuation issues (Risks) o Case study


Networking session will follow.


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Presenters:

Nicola Campbell, Principal, BA Venture Partners

Nicola Campbell is a Principal with BA Venture Partners. Nicola joined BAVP from Burrill & Company, a life sciences merchant bank, where she focused on biotechnology venture capital. Prior to Burrill & Company, Nicola worked at Genentech where she held two separate positions. She began at Genentech as an Immunologist in the Research Department and eventually moved on to serve as a member of the Business Development team.

At BAVP, Nicola focuses on the biotechnology and biopharmaceutical industry. She is particularly interested in early to mid stage investment opportunities in drug discovery and product-based companies.

Nicola received her Doctorate in Molecular and Cellular Immunology from the Mount Sinai School of Medicine and has been an invited speaker at several International Scientific Conferences as well as being a recipient of the AGA Outstanding Research Award. Prior to obtaining her Ph.D., Nicola completed her Masters Degree in Medical Sciences also from the Mount Sinai School of Medicine and received her BS degree in Human Biology from the University of Guelph (Ontario, Canada).

Brian C. Cunningham, Partner, Cooley Godward

Brian C. Cunningham is counsel to the Cooley Godward Business department. He was a partner with the Firm's Life Sciences practice from 1989 through 1998, and rejoined the Firm in 2003, where he is resident in the Palo Alto office. Brian specializes in representing life sciences and health care companies including corporate and securities matters, technology transfer agreements, clinical research and development agreements, patent strategy counseling, formation and financing of new and emerging technology companies and strategic partnering arrangements

From 1982 through 1988, he served as vice-president, secretary and general counsel of Genentech Inc. From 1998 to 2003 he served as president and COO of Rigel Pharmaceuticals, Inc. Brian is an adjunct professor in biotechnology law at Santa Clara University Law School. He also serves as a member of the Boards of Directors of QuestCor, Inc., Synarc, Inc., SAMCEDA, the Bay Area Bioscience Center and Partners In School Innovation. He received his J.D. in 1970 from Washington University in St. Louis. He is a member of the bar in New York, Missouri and California and is a member of the American Law Institute.

Heath Lukatch, Managing Director, Piper Jaffray Ventures

Heath Lukatch is a Managing Director with Piper Jaffray Ventures. He focuses on emerging companies in the biotechnology sector. Prior to joining Piper Jaffray Ventures in January 2001, Heath was an engagement manager at McKinsey & Company, where he was a leader in McKinsey's biotechnology practice. While at McKinsey, Heath consulted to a variety of large and small biotechnology companies and worked closely with CalPERS to define and launch a new $500 million biotechnology investment vehicle. Prior to joining McKinsey, Heath was co-founder and CEO of AutoMate Scientific, a biotechnology instrumentation company. Heath has held scientific positions with Chiron Corporation, Roche Bioscience and Cetus Corporation, where he was a molecular biologist, a contract electrophysiologist, and a protein chemist, respectively. Heath received his Ph.D. in neuroscience from Stanford University, where he was a DOD USAF Fellow, and his B.A. in biochemistry from the University of California at Berkeley.

Pedro Santos, Director, Standard & Poors Corporate Valuation Service

Pedro C. Santos is a Director in the Corporate Value Consulting group of Standard & Poor's (S&P CVC). He has a broad experience in computer modeling, market research, financial analysis, valuation of derivatives, valuation of tangible and intangible assets, and Mergers & Acquisitions. Pedro is also experienced in Decision Analysis, Risk Analysis and Monte Carlo Simulation, and Real Options.

Prior to joining Standard & Poor's, Pedro was the Mergers & Acquisitions Manager at MedTrans Inc., a leader in the Medical Transportation Industry. He performed the valuation of several target companies, conducted field due diligence, and assisted in the closing of two corporate acquisitions. Pedro has also held the position of Senior Consultant at Deloitte & Touche's Corporate Finance Practice where he gained valuable experience in M&A valuations, LBO's, and in International Finance. In addition, he has worked as an Assistant Portfolio Manager at Ourinvest International Corporation, a Hedge Fund located in Miami, Florida.

Pedro holds a Masters in Business Administration with emphasis in financial management from National University, San Diego, (1994) and a Bachelor in Business Administration with emphasis in finance from San Diego State University (1992).

 

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