FCF & BSV Case Study: Liquid Biopsy Company

Asset Valuation Report & Integrated Financial Model

Company Description

  • Spanish in-vitro diagnostics company focused on early detection of cancer, using a cutting-edge liquid biopsy technology
  • First product is a minimally invasive, accurate and affordable blood-based CRC screening test to detect colorectal cancer and adenoma, allowing early detection and cancer prevention
  • Development of a multi-cancer platform to provide further tests asadditional growth opportunities, e.g. for liver and pancreatic cancer

Scope of the Project

  • The Company engaged BSV and FCF to support in the valuation of its assets, including the preparation of a detailed sales model reflecting the potential of its diagnostic tests
  • The material will serve to validate the products’ market potential in the current CMS reimbursement process
  • The comprehensive sales forecast and integrated financial model will support discussions with potential investors

BioScience Valuation’s Role

  • Professional preparation of an asset valuation report, including
    • Identification of a reasonable target population
    • Market size estimations using a top down approach and determination of the sales potential
    • Elaboration on reasonable pricing assumptions in different target countries
    • Assessment of the development plan and associated risks
    • Detailed benchmark analysis
    • Risk-adjusted NPV asset valuation
    • Sensitivity analyses
  • Development of a detailed sales model reflecting the assumptions and results from the asset valuation report

FCF’s Role

  • Preparation of all relevant material for the financing process, including an investment teaser and an integrated financial model
  • Based on the sales model provided by BSV and a detailed budget provided by the Company, FCF prepared the integrated financial model that projects the financial development of the company over the next years
  • The model also includes a sensitivity analysis where specific parameter like revenues or working capital can be adapted to visualize different future scenarios

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