Biotech Values

[biotech_researcher]

ENTA Valuation Model- Nice work, however it begs a question...

You show (I believe) peak sales.. don't you have to discount back to today's value?

Example:

ENTA’s share of ABBV’s HCV royalties is tiered according to sales, with the lower tier paying about 4.5% (#msg-91918990). Thus, ENTA’s royalty on $3B of ABBV sales—at the lower royalty tier—is $135M per year. However, at the level of ABBV’s HCV sales I envision, some of ENTA’s ABT-450 royalties will likely be at the higher tier, which is an increase of about 50% relative to the lower tier (#msg-91918990). Since the sales thresholds for triggering the middle and high royalty tiers have not been disclosed, I’ll rather arbitrarily increase the $135M figure above to $150M to account for the multiple-tier effect.