Deciding between biobetter versus biosimilar development options based on net present value calculations

Authors

  • Kerstin Marie Bode-Greuel Bioscience Valuation BSV GmbH
  • Klaus Nickisch Evestra Inc.

DOI:

https://doi.org/10.5912/jcb636

Keywords:

biobetter, NPV modelling, portfolio management

Abstract

 

Abstract

The growing share of biopharmaceuticals is paralleled by an increasing interest in biogenerics, as blockbuster biologics are approaching their patent expiries. Companies need to make decisions whether to invest in biosimilars or in biobetters with enhanced properties, the latter enabling favorable differentiation vis-à-vis the original product on the one hand and biosimilars on the other hand. Net present value (NPV) modelling was applied to evaluate the financial attractiveness of two categories of biobetters in comparison to biosimilars, and recommendations are made which options should be preferred depending on a company’s business model.

Author Biographies

Kerstin Marie Bode-Greuel, Bioscience Valuation BSV GmbH

partner & co-founder of Bioscience Valuation BSV GmbH

Klaus Nickisch, Evestra Inc.

CSO and executive vice president of Evestra Inc.

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Published

2014-04-01

Issue

Section

Articles