Considerations for Start-Up Biotech Company Valuation

Authors

  • Walter Bratic OverMont Consulting
  • Justin R Blok OverMont Consulting
  • Megan M Gostola OverMont Consulting

DOI:

https://doi.org/10.5912/jcb648

Keywords:

valuation, bio-tech, start-up, risk, biologics

Abstract

The prospect of government regulation, product liability lawsuits, and customer reliance on third-party payers contribute to the complexity of valuing biotech start-ups. In addition, the inherent complexity of biologic drug manufacturing and storage creates secondary risks that must be considered in a valuation.

Author Biographies

  • Walter Bratic, OverMont Consulting

    Managing Director at OverMont, Mr. Bratic has extensive business and consulting experience across a broad range of industries. With respect to intellectual property, he has performed valuations, conducted licensing negotiations and strategic management studies for corporate clients including multinational and international joint ventures, start-up and development stage companies. He has been involved in a variety of litigation matters, involving patent, trademark, copyright infringement, theft of trade secrets, breach of contract, tax disputes, breach of fiduciary duty, energy, and antitrust matters. He has also performed research and analysis regarding industry dynamics and IP management practices, portfolio optimization, evaluation of corporate IP strategies, and effects of technology investment, innovation, adoption and transfer on competition. Mr. Bratic has testified in federal, district, bankruptcy, and state court, ICC, ITC and AAA proceedings related to a wide variety of civil litigation disputes, including: economic, financial, accounting and business matters. Mr. Bratic has also served as a court appointed expert.

  • Justin R Blok, OverMont Consulting

    Managing Director at OverMont, Mr. Blok has engaged in a variety of litigation matters involving patent, trademark, and copyright infringement, theft of trade secrets, business valuation, business interruption, bankruptcy, and fraud. He has worked with both plaintiffs and defendants in the analysis and determination of economic damages, including business interruption, lost profits, reasonable royalties, price erosion, unjust enrichment, diminution of value and insolvency analyses, valuation, fixed, variable, and semi-variable costs, and pre- and post-judgment interest. Mr. Blok’s experience spans a variety of industries, including oil and gas, consumer products, professional sports, pharmaceuticals, semiconductors, computer hardware and software, among others.

  • Megan M Gostola, OverMont Consulting

    Ms. Gostola is currently an Associate at OverMont Consulting.  She holds an MBA from Rice University’s Jesse Jones School of Business and a Bachelor of Arts from Macalester College.  She has engaged in litigation matters involving patent, personal liability, and trade secret theft to determine economic damages.  Ms. Gostola’s experience spans a variety of industries, including oil and gas, international development, and the non-profit sector.  

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Published

2014-04-01

Issue

Vol. 20 No. 2 (2014)

Section

From the Boardroom