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How Taxes Shape Biotech & Pharma Licensing Deals: 💡Maximize Value with Smart Strategies 💡 In the biotech and pharmaceutical industries, licensing deals are crucial for bringing innovative therapies to market, but one often-overlooked factor that can greatly impact these deals is taxes. Whether you're a biotech innovator or a pharma giant, understanding how tax regimes affect your financial outcomes is key to optimizing licensing agreements. For licensees in low-tax environments, the increased post-tax earnings offer room for more attractive deal terms. On the other hand, biotech licensors in favourable tax jurisdictions can maximize shareholder returns by leveraging tax benefits in negotiations. 🔎 Run Tax Simulations to Unlock Hidden Value 🔎 At Avance, we’ve seen how running tax simulations using RIVAL software can reveal opportunities for deal optimization. By accounting for both parties’ tax environments, dealmakers can structure agreements that maximize post-tax value. For example, a biotech in a low-tax jurisdiction could negotiate higher royalties, while a pharma company with tax advantages might offer better upfront terms. The goal is to align tax benefits with deal structure, leading to smarter decisions and greater mutual gain. Want to learn more? 👉 Read the full blog here https://lnkd.in/dkdZ4MG3 #BiotechDeals #PharmaIndustry #TaxImpact #Biopharma

Exciting News!    We are proud to announce that Avance, in collaboration with Steve Engen, CEO of Renexes, will be hosting our upcoming workshop: "Insights into European-Japan Biopharma Licensing Deals" in Tokyo, Japan!   On October 23rd, this exclusive event will bring together top leaders in the biopharma industry to:   🌍 Discuss key trends shaping European-Japan licensing deals 💡 Share best practices for cross-border collaborations 🔍 Leverage our innovative valuation and licensing software, designed to optimize deal-making strategies.   While the workshop is at full capacity, if you’ll be in Tokyo during these dates and want to connect or discuss potential partnerships, feel free to reach out—we’d love to chat!   #Biopharma #LicensingDeals #ValuationSoftware #EuropeJapan #Avance #Renexes #Innovation #Collaboration #BusinessStrategy #Networking 

A big thank you to our hosts: Goodwin and H.C. Wainwright & Co., LLC for making this fantastic event possible! We’re excited to engage with industry leaders and dive into discussions about the future of biotech. #BiotechOnTap #Networking #Innovation #Healthcare #Avance #Munich

Unlocking Intrinsic Value for BioPharma Companies: The Key to Smarter Investments In the complex and rapidly advancing world of biopharma, understanding a company’s intrinsic value is crucial for investors and stakeholders. Given the high levels of innovation and the long, often risky development pipelines, BioPharma companies present unique challenges when it comes to valuation. To navigate this, savvy investors focus on intrinsic value, which reflects a company’s true worth based on fundamentals rather than market sentiment. Key Factors to Consider when looking at Intrinsic Value are: -Pipeline Strength: The number of drugs in the pipeline, stages of development, and potential market size are crucial in biotech valuation. -FDA Approval Likelihood: The probability of regulatory approval is a major factor. Drugs in later-stage trials or those targeting unmet medical needs typically have higher chances of approval. -Patent Life & Exclusivity: Patents and market exclusivity periods impact future cash flows, so it’s important to consider when patents expire and generic competition could enter the market. -Strategic Partnerships: Biotech companies often partner with larger pharmaceutical companies, which can provide revenue through milestones and royalties. These partnerships can add value. -Burn Rate: The rate at which the company is using cash (especially pre-revenue companies) can impact how long the company can operate before needing additional funding. In an industry as dynamic as BioPharma, making accurate valuations requires not only traditional methods but also advanced tools like RIVAL (https://lnkd.in/ersP25g3). RIVAL offers tailored financial analytics that account for the nuances of the BioPharma sector, including pipeline progression, R&D costs, and risk-adjusted cash flows.

Vabysmo’s Meteoric Rise: Roche’s Retinal Drug Reaches Quarterly Blockbuster Status Roche’s Vabysmo, a groundbreaking treatment for wet age-related macular degeneration (wet-AMD) and diabetic macular edema (DME), has hit a new milestone, generating $1.1 billion in Q2 2024 alone. Vabysmo was launched in January 2022 and showcased impressive adoption, with sales of $685 million in its first year. In 2023 it already reached blockbuster status with $ 2.7 billion in sales and in the first half of 2024, the drug racked up $2 billion in sales, with projections to hit $4 billion by year-end. Roche’s Vabysmo isn’t just growing—it’s taking a significant bite out of Regeneron’s Eylea, a veteran in the wet-AMD and DME treatment space. Vabysmo’s market share rose from 24% to 27% in wet-age macular degeneration, from 18% to 19% in diabetic macular edema (DME) and from 8% to 15% in retinal vein occlusion during Q2 of 2024. Vabysmo’s impressive sales adoption highlights how its greater convenience—thanks to its dual-action mechanism and longer dosing intervals—is driving faster uptake among both patients and physicians. By minimizing the frequency of injections, Vabysmo simplifies treatment, accelerating its adoption. #Ophthalmology #RetinalHealth #Vabysmo

The choice between bucket and progressive royalty tiers is a critical component of any pharma licensing deal. While bucket tiers offer simplicity and predictability, progressive tiers provide a more nuanced approach that can incentivize growth and collaboration. When negotiating a licensing deal, it’s essential to choose the royalty structure that aligns best with your financial goals and strategic objectives. By modelling scenarios upfront and creating a good understanding of the implications of each structure, you can craft a licensing agreement that optimizes value for both parties. Our RIVAL valuation and modelling software is a tool that can help to do that in a quick and easy manner! When comparing both options, it becomes clear that with progressive tiers, as sales increase, the total royalties paid can be lower than in bucket tiers because only the incremental revenue above each threshold is subject to the higher royalty rates. Especially, when higher sales revenues trigger different tiers, the difference between bucket and progressive tiered royalties becomes clear. 

BIOPHARMA WACC Overview 2023: Insights from Avance Just released: A comprehensive look at Weighted Average Cost of Capital (WACC) trends in the biopharma industry. Key findings: Japanese biopharma companies generally face higher capital costs Micro-cap companies have the highest WACC across all regions The question is: will interest rate cuts lead to lower WACC's in 2025 and what would that mean for investment strategies and drug development in our industry? Share your thoughts! #Biopharma #FinancialAnalysis #IndustryTrends #AvanceResearch

Rezdiffra's Market Debut: A Pioneering NASH Treatment's Journey to Success Rezdiffra, the groundbreaking therapy for non-alcoholic steatohepatitis (NASH), is setting the stage for a new era in liver disease treatment, but its path to widespread adoption is just beginning. Launched by Madrigal Pharmaceuticals in April 2024, this first-of-its-kind drug generated $14.6 million in its inaugural quarter—a promising start that hints at its blockbuster potential. Madrigal has focused on building a strong commercial foundation for Rezdiffra, anticipating that it will take around a year to fully establish the drug in the market. The company is targeting around 315,000 patients in the U.S. who are currently being treated for NASH, aiming for a rapid uptake as more physicians and patients become familiar with the treatment and as insurance coverage expands. Rezdiffra is priced in the US at an annual wholesale acquisition cost of $47,400 before any discounts and currently has commercial coverage for about 30% of the U.S. population, with efforts ongoing to increase this to 80% by the end of 2024. Despite the promising start, the adoption has been slower than some analysts expected, partly due to challenges such as the Veterans Affairs Department requiring a liver biopsy for patient eligibility. However, Madrigal is optimistic about overcoming these hurdles and believes that Rezdiffra could reach peak sales of $5.5 billion, with $2.6 billion projected by 2030. As Rezdiffra's market presence grows and as other competing NASH treatments emerge, we will track its adoption and sales trajectory over the next 6 years to assess whether it can meet these ambitious sales targets.

Real-World Evidence in Biotech: Strengthening Forecasts and Business Cases In the fast-paced biotech industry, making informed decisions early is crucial. Real-world evidence (RWE), particularly from key opinion leaders (KOLs) in the field of your product, can significantly enhance the accuracy of forecasts and business cases and enhance chances on overall success. Here's how: Validating Market Assumptions RWE from KOLs provides ground-level insights into current treatment paradigms, unmet needs, and potential adoption barriers. This real-world perspective helps validate or challenge our market assumptions (market share), ensuring our forecasts are built on a solid foundation. 1. Refining Patient Population Estimates KOLs can offer nuanced understanding of patient subgroups, treatment patterns, and diagnostic practices. This information allows for more accurate patient population estimates, a critical component in sizing market opportunities and projecting potential revenues. 2. Assessing Competitive Landscape Through RWE, we gain insights into the performance of existing therapies and emerging competitors. KOLs can provide valuable perspectives on how new treatments might fit into the current landscape, helping to refine market share projections and identify key differentiators. 3. Informing Pricing and Reimbursement Strategies RWE from KOLs can shed light on payer attitudes, reimbursement challenges, and perceived value of new therapies. This information is crucial for developing robust pricing strategies and forecasting potential market access hurdles. 4. Identifying Key Success Factors By leveraging RWE, we can pinpoint critical factors that drive treatment decisions and product success in the real world. This insight allows us to focus our development efforts and marketing strategies on elements that truly matter to clinicians and patients. By incorporating RWE from KOLs into our forecasting and business case development processes, biotech companies can create more robust, realistic projections. This approach not only enhances decision-making but also builds credibility with stakeholders, from investors to regulatory bodies. Avance now offers RWE through quick surveys in key markets within 10 days in a very fee efficient way making it also feasible for early start-ups. If you would like to learn more, reach out at info@avance.ch

In biotech, asset value creation is a dynamic process, influenced by three critical levers: Future Cash Flow, Time, and Risk. These levers shape the intrinsic value of your assets over time: •Future Cash Flow: Capturing both the positive and negative financial flows generated by your asset. •Time: Factoring in the development time until market launch and the period of market presence. •Risk: Assessing the uncertainties tied to future cash flows. To truly maximize asset value, it's essential to break down each lever into actionable vectors and sub-vectors. These components collectively determine the net impact on your asset's overall risk-adjusted value. Effective decision-making hinges on your ability to monitor and manage these sub-vectors For example the decision to spend more money on resources to speed up patient enrollment in a trial or not. RIVAL software simplifies this complex process. It enables seamless tracking of all relevant vectors, offering rapid insights that can drive smarter, faster decisions—including those related to strategic deals. If you're looking to elevate how you manage and optimize the value of your biotech assets, it's time to explore what RIVAL can do for you: www.ri-val.ch