Pharmaceutical Industry Valuation

This book is another book in the valuation series written by Zheng Hua and Tu Honggang, members of the CVA Association Expert Committee. As a continuation of the book "Valuation of the Medical Industry", investment and valuation practices in the pharmaceutical industry are also full of challenges. This book focuses on the valuation of biopharmaceuticals. This is mainly because in the past ten years, China has changed the pattern of China's pharmaceutical industry by learning from advanced foreign experience, carrying out drastic reforms, investment from the government and private enterprises, and the return of a large number of overseas scholars. In a few years, China has become the second largest market for innovative drugs in the world. We believe biopharmaceuticals are at the heart of contemporary drug discovery and are arguably the future of the pharmaceutical industry, both from a financial and clinical perspective. However, the risks involved in investing in biopharmaceutical companies and the high degree of uncertainty in returns pose many challenges to those interested in investing in such companies. As an investor, you need to clearly understand the concept of "Valley of Death". In addition, the development of biopharmaceuticals involves many inherent risks: technical risks, commercial risks, regulatory risks, etc. For early-stage biopharmaceutical companies, capital is critical to drug discovery and development. We see that start-up biopharmaceutical companies often fail not in the market, but in financing. A wide variety of risks exist throughout the drug development process, from drug discovery to final regulatory approval, to marketing and day-to-day sales. Understanding the challenges and risks faced by biopharmaceutical companies is important for valuation analysts to forecast revenue and costs, and this book will help you make sound judgments.