Finance for Growth in Health and Life Sciences

2019-2020

Course Objective

To acquire theoretical insight and practical experience in valuating and
financing small and medium sized companies for growth with a special
emphasis on specific issues in the Health sector and Life Sciences
industry.

The learning objectives of this course are:
- To read, interpret and prepare financial statements
- To assess investment opportunities based on net present value
calculations
- To explain the differential nature of financial aspects and
investment behavior for the pharmaceutical industry
- To apply real option theory to evaluate or prepare investment
opportunities
- To integrate financial arguments in the shaping or assessment of
investment opportunities in the pharmaceutical industry
- To apply capital asset pricing to calculate investment risk & return
in relation to your own financing or investment needs.
- To determine when to use which (non-)dilutive funding instrument
based on financial implications and growth phase
- To describe the consequence of terms of investment from an investor
and an investee point of view

Course Content

Increasingly, policy makers, managers, entrepreneurs and students will
be confronted with a corporate way of thinking in Health and Life
Sciences organisations. To function in such an environment it is
critical to have detailed and in-depth knowledge of financing moieties
and possibilities. Hand in hand with making proper evaluations and
informed choices on when to use which financing instruments the
valuation of the company or the underlying IP is essential. In a
real-life modelling computer lab this course will practice with
determining and calculating risk adjusted valuation as a basis for
financing.

Topics that will be dealt with in detail include:
- Preparing and interpreting a firm's financial statement: the balance
sheet, P&L (profit and loss) statement and cashflow overview
- Time value of money and interest rates
- Risk adjustments and discounted cash flow analysis (DCF)
- Investment risk & return
- Valuating projects and enterprises
- IP and firms
- Techniques in financing
- The pharamceutical development value chain
- A practical guide to over 24 ways to fund a start-up or growing firm.

Teaching Methods

Lectures, computer modelling lab and assignment, working groups, self
study.

Method of Assessment

Written exam (80%) and assessment of the Excel valuation model (20%).
Both parts need to be passed.

Entry Requirements

Prior knowledge: succesful completion of the course Business management
in Health and Life Science is required. Completion of Social
Entrepreneurship in Health and Life Sciences or practical experience in
the field is strongly advised.

Literature

Venture Capital Deal Terms by Harm F. de Vries, Menno J. van Loon and
Sjoerd Mol. Hms Media Vof. ISBN13: 9789082562309
Corporate Finance (4th edition) by Berk and Demarzo. Pearson Education
Limited. ISBN13: 9781292160160

Target Audience

Optional course for Master students Management, Policy Analysis and
Entrepreneurship in Health and Life Sciences (MPA).
PhD’s and post graduates, staff of University or knowledge institutes.
Policy makers within governmental institutes that need to thoroughly
evaluate investment propositions.
Entrepreneurs in innovative companies within the Health and Life
Sciences domain that aim to develop a clear investment proposition.

General Information

Course Code AM_1193
Credits 6 EC
Period P2
Course Level 500
Language of Tuition English
Faculty Faculty of Science
Course Coordinator dr. L.H.M. van de Burgwal
Examiner E.A.M. Claassen
Teaching Staff prof. dr. H.J.H.M. Claassen

Practical Information

You need to register for this course yourself

Last-minute registration is available for this course.

Teaching Methods Computer lab, Study Group, Lecture
Target audiences

This course is also available as: