Evaluation of an Oncology Focused Target for an Acquisition

A midsize biopharma company was interested in acquiring a commercial-stage biotech firm. The client reached out to Blue Matter for assistance with primary market research, as well as a market analysis, revenue forecast, and valuation to support their assessment of the target.

We began by outlining the key strategic, scientific, organizational, and financial aspects of the target company. We performed secondary research to develop tumor specific overviews, as well as highlight the market size, current and future landscape, unmet needs, and patient journey. We validated our findings with high prescribing HCPs, KOLs, and payers.

Next, we leveraged secondary and primary research to develop revenue forecasts for the target’s assets with multiple scenarios and sensitivity analyses on key drivers. We collaborated with the client to estimate operating expenses and P&L forecasts, and identified potential synergies with the target. We also developed a risk adjusted valuation model to determine the standalone value of the target under multiple deal scenarios and performed sensitivity analysis to identify and quantify the main value drivers. In addition, we modeled multiple deal parameters to understand deal economics and assist the client with their pricing and structure for the deal. Lastly, we developed multiple presentations to assist the client with internal meetings and to help drive negotiations with the target company.

We provided the client with a robust understanding of the target asset, its value proposition, valuation, and key risks and opportunities. Based on our findings, the client was able to get internal alignment and proceeded with an offer for the target.