RT Journal Article SR Electronic T1 Financial Valuation Algorithm for the Assessment
of the Future Sales of a New, Innovative Medicinal Product JF The Journal of Private Equity FD Institutional Investor Journals SP 35 OP 44 DO 10.3905/jpe.2014.17.3.035 VO 17 IS 3 A1 Mark Nuijten A1 Marja Pronk YR 2014 UL https://pm-research.com/content/17/3/35.abstract AB New emerging requirements by reimbursement authorities and payers and policy changes are increasingly going to determine the actual future sales and also the actual post-launch costs of new, innovative medicinal products. As the future financial performance of a pharmaceutical company is directly related to the revenues of new products, an appropriate assessment of the potential sales forecast of the portfolio of forthcoming new products is an important predictor of the financial value of a pharmaceutical company.This article presents a financial valuation algorithm for the assessment of the futures sales of a new, innovative medicinal product based on the current reimbursement policies and future business models for reimbursement. The algorithm is applied to possible new products for the treatment of depression and multiple sclerosis.TOPICS: Private equity, fundamental equity analysis, legal/regulatory/public policy, risk management