Services

Asset Search, Market Assessment, Valuation

Bluestar uses nimble and efficient processes to meet our clients’ needs, expectations, and budget. At the core of our relationship with our clients is conducting analyses that will help inform their path forward, whether that be analyzing their current portfolio, helping them think through external opportunities, or evaluating other strategic options. We have an internal database of several thousand executives in the life science industry, which allows us to rapidly find the right contact to either discover asset owners or help identify potential partners. We are also able to leverage a broad network of business partners, available to work with us on select projects, that further expands our capabilities. These groups have deal-making, banking, clinical and regulatory expertise and experience.

Asset Search

Companies search for new assets for a number of reasons, including:

increase revenue

Immediately increase revenues or earnings

derisk pipeline

De-risk existing pipeline of assets in development

expand portfolio

Expand existing portfolio

recognize opportunity

Ensure they are active in the marketplace and do not miss an opportunity

Our Process

Our asset search methodology:

Our asset search methodology

A. Objectives and Screening Criteria

  • Screening criteria are converted into a custom scoring algorithm for the Target Universe
  • Includes weighted criteria relating to Product Fit and Actionability
    • Product fit criteria may include, but are not limited to Stage of Development, Indication/Therapeutic Category and Patent Estate.
    • Actionability criteria may include, but are not limited to Receptivity to Transaction, Estimated Peak Sales, Transaction Size and Estimated Transaction Value.

B. Refinement

  • The client and Bluestar teams work jointly to develop a prioritization process that can be used to further narrow down the list.
  • A “deep dive” analysis of the top targets is then undertaken.
  • Bluestar and the client finally determine which targets should be pursued, and decide on a plan for further action (“Core Target List”).

Market Assessment

Bluestar BioAdvisors provides strategic advice supported by primary and secondary research. Primary research may include in-depth interviews, web surveys, focus groups and face-to-face interviews. Secondary research focuses on scientific literature, financial and analyst reports, drug and trial databases, and industry reports and databases.

We start with the business decision and project purpose to develop the project scope and establish team alignment. We identify data needs for each key assumption in assessing a product’s potential, or when developing a forecast or valuation. We engage in a collaborative process with our clients to ensure an alignment of goals with the approach and methodology.

Our research methodology and analysis take into account:

Our market assessment methodology

Valuation

Our valuation methodology complements and often expands our client’s resources and processes. We strengthen valuations through benchmarking networks, broader database access, and expanded methodology. We provide investor “teaser” materials and product positioning white papers for those clients who require such documents as representations of an objective, independent assessment of the monetary and market value of an asset or asset portfolio. Our analyses can also assist in agreement negotiations by providing an assessment of the percentage of the future asset value that a licensee will retain based on non-binding terms sheets offered by the licensor (the so-called rNPV split analysis).

We undertake three approaches to financial valuation: discounted cash flow, comparable transactions, and comparable public companies.

discounted cash flow

Discounted Cash Flow

  • Determines the present value of an asset or company based on the expected future cash flows generated
  • Risk-adjusted using the probability of success at different clinical stages of development
  • Pro: Derives an Intrinsic Value
  • Con: Sensitive to Assumptions
comparable transactions

Comparable Transactions

  • Both M&A and licensing transactions in the similar space are examined to gauge a reasonable range of values that an asset would be able to obtain if it were to face similar opportunities
  • Analysis would focus on transactions in similar phases with the same indication
  • Pro: Most Likely Exit Strategy
  • Con: Timing Affects Value
comparable public companies

Comparable Public Companies

  • Estimates the value of an asset based on risk-adjusted enterprise value of the pipeline of publicly traded companies targeting similar market opportunity
  • The focus would be on companies with a similar assets and financial situation
  • Pro: Understand Competititve Space
  • Con: Liquidity Discount