THE BIO (더바이오)’s Post

If you're venturing into biotech stock investments, determining the right share price can be challenging. A recent article sheds light on this process, featuring expert insights on the most reliable valuation methods. There's no single formula to capture all the factors influencing a biotech stock—market potential, cash burn rate, management team, business strategy, intellectual property, and unpredictable events like a global pandemic. However, investors can use gathered information to make reasonable assumptions and estimate a stock's value.

This is an insightful article on pre & post money valuation of pharma/biotech assets! Great job Ted Yu & team at Stout.

Great insights Ted Yu - navigating Section 409A valuations is particularly challenging for biotech startups, where traditional financial metrics often don't apply. It highlights the critical need for a knowledgeable partner who understands the complexities of valuation methodologies and grasps the biotech industry's unique nuances. The right partner can make all the difference, providing compliance, financial insight, and strategic guidance tailored to the biotech landscape. An experienced ally in 409A valuations ensures that stock options are effective, compliant incentives, allowing companies to focus on innovation and growth. Choosing the right partner isn't just about meeting regulatory requirements—it's about securing a strategic ally in your journey to market success. #Biotech #409AValuations #StrategicPartnership #Innovation

Great article by Ted Yu!

409A analysis in the biotech space can be complex, as typical methods rely on historical and projected revenues and cash flows. Stout’s Ted Yu and Brent Glova explore the nuances of valuation methodology applicable to pre-revenue, private start-ups and shed light on the unique challenges these companies face. https://bit.ly/3xgpq5X

Excellent read on 409A valuation - Ted Yu is the man!

Fascinating article by my friend Ted Yu at Stout. Learning new ways of #valuationmethods in today's increasingly complex marketplace is paramount to successful #M&A.

Really interesting read on methods to evaluate bio-tech startups by my friend Ted Yu!

#News #JPM24: Several experts on a panel Wednesday at #JPM’s Biotech Showcase expressed positive attitudes for the coming year on the investment side, with Andrew Lam, PharmD, the principal of special investments at Ally Bridge Group, commenting that the panel’s title should be “Biotech in 2024: Let the good times roll.” In all seriousness, Lam noted that there are “signs of life” in the industry. Gabriel Cavazos a senior managing director of investment banking at Leerink Partners, said that while the industry has been through a lot over the last two years, he is ready to see more of a rally in the market. “What’s exciting is despite the hard times in 2023 . . . the last two months of the year have been quite productive, November and December,” noted panelist Maha Katabi, PhD, CFA, general partner at Sofinnova Investments . “We closed the year with 23 M&A deals in the industry. . . . And the last time we exceeded that number was . . . in 2002.” On the #IPO front, Lam noted that more companies could go public as soon as next week and expressed cautious optimism about the prices. This will give investors even more confidence as more capital is being “infused” into the sector. While Lam did say valuations are being compressed and raises are shrinking in deal size compared to previous years, the market is getting better, and sizes are bound to increase. In Cavazos’s view, the IPO front is only just returning to an “equilibrium” stage. Read from from Tyler Patchen and BioSpace using the link in the comments below.

𝐇𝐞𝐫𝐞’𝐬 𝐖𝐡𝐲 𝐋𝐚𝐬𝐭 𝐖𝐞𝐞𝐤’𝐬 𝐒𝐭𝐨𝐜𝐤 𝐌𝐚𝐫𝐤𝐞𝐭 𝐂𝐫𝐚𝐬𝐡 𝐈𝐬 𝐀 𝐖𝐚𝐫𝐧𝐢𝐧𝐠 𝐒𝐢𝐠𝐧 𝐅𝐨𝐫 𝐀𝐮𝐬𝐭𝐫𝐚𝐥𝐢𝐚’𝐬 𝐁𝐢𝐨𝐭𝐞𝐜𝐡 𝐒𝐞𝐜𝐭𝐨𝐫 Investments in biotechnology are most impactful when made by those with deep pockets. Without funding from angel investors/venture capitalists, many biotech companies cannot continue to meaningfully function. Analysis of the recent downward spike in global markets may be an indicator that the Australian Biotech sector could be in trouble. Read More Here... https://lnkd.in/g-SgtmU5