Case Studies

In this chapter we present two case studies. For each case a template Excel spreadsheet has been prepared. These template spreadsheets can be requested from the authors (e-mail addresses can be found in the cover pages). The reader can solve the case studies as an extended exercise – a sketch of the solution is added at the end of each case.

Each case study addresses a specific topic. The first case, “Creating a Term-Sheet for BT-100”, is about structuring a term sheet for the buy-side. A mid-sized pharmaceutical company is interested in in-licensing a phase I project. The solution requires a well-structured Excel sheet with rNPV valuation. The solution in takes about 2 hours.

In the second case, “Bio-Tec’s Lead Compound”, the student must compare different strategic options for a project. Either the company licenses it now, after the next phase, or not at all. For the solution the student is expected to create an Excel spreadsheet with rNPV and real options. He must compare different options and how these alternatives can be used in negotiating a term sheet. The solution in class takes 3-4 hours.