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.
Presenters:
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Nicola Campbell, Principal, BA Venture Partners
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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).
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Brian C. Cunningham, Partner, Cooley Godward
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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.
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Heath Lukatch, Managing Director, Piper Jaffray Ventures
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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.
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Pedro Santos, Director, Standard & Poors Corporate Valuation
Service
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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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