Course ObjectiveTo 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
The learning objectives of this course are:
- To read, interpret and prepare financial statements
- To assess investment opportunities based on net present value
- 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
- 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 ContentIncreasingly, 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
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 MethodsLectures, computer modelling lab and assignment, working groups, self
Method of AssessmentWritten exam (80%) and assessment of the Excel valuation model (20%).
Both parts need to be passed.
Entry RequirementsPrior 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.
LiteratureVenture 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 AudienceOptional 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.
|Language of Tuition||English|
|Faculty||Faculty of Science|
|Course Coordinator||dr. L.H.M. van de Burgwal|
|Examiner||prof. dr. H.J.H.M. Claassen|
prof. dr. H.J.H.M. Claassen
You need to register for this course yourself
Last-minute registration is available for this course.
|Teaching Methods||Computer lab, Study Group, Lecture|
This course is also available as: