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BioWin
Biotech valuation: an art or a science?
Frank Hazevoets
CFO
Promethera Biosciences
Member of the successful cluster of cell therapy companies in the Walloon region
Our vision is to lead the liver cell therapy field with innovative (stem) cell technologies
originated from human liver to treat high unmet medical needs
3 proprietary cell technology platforms :
Hepastem : clinical stage with 2 phase II trials on going
Heparesc : late stage with filing for UCD indication in Canada
H2Stem : pre-clinical stage
Robust supply chain
MANUFACTURING cGMP PLANT
TRANSPORTATION
PHARMACY/HOSPITAL
Purification & expansion,
Filling in vials & cryopreservation
Transportation
on dry ice or
in nitrogen shipper
Simple reconstitution by
Health Care Professional
Infusion to patients
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Biotech valuation : an art or a science
Valuation
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Biotech valuation : an art or a science
Valuation
Market approach
Income approach
Cost approach
How comparable is the comparable
Sensitivity of parameters
All kind of discounts
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Biotech valuation : IPO case
Uptick compared to previous round
Pre-money valuation of recent biotechs as a benchmark
Long range plan as a starting point
The price discovery process is a step-wise exercise
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Biotech valuation : TiGenix – Cellerix reverse merger case
Value of target : € 58M
Technology value
Cash
Assessment of technology value
Pre-money valuation in last round
Analysis of comparable companies and transactions
Sum of the parts of the lead programs of target
Share deal (contribution in kind)
Special report of Board of Directors
Auditor’s report
Issue of 44,8M new shares at € 1,3 per share
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Biotech valuation : TiGenix – Cellerix reverse merger case
Value of target : € 58M
Technology value
Cash
Assessment of technology value
Pre-money valuation in last round
Analysis of comparable companies and transactions
Sum of the parts of the lead programs of target
Share deal (contribution in kind)
Special report of Board of Directors
 Ratio between both entities : 43% - 57%

Negotation power/support of existing shareholders base
 Cash proceeds

€ 18 M from investors of target before merger

€ 15M rights issue after merger at € 1,0 per share
 Board composition
 Management composition
Auditor’s report
Issue of 44,8M new shares at € 1,3 per share
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