While the software sector relies on speed of execution, the Healthcare and Biotechnology sector is built on long-term horizons and scientific breakthroughs. This is the second major pillar of expertise emerging from the analysis of our engagements (2017–2025).
In a field where a molecule or a medical device can be worth hundreds of millions even before generating its first euro of revenue, how can value be reliably assessed? The following outlines key trends and methodologies drawn from our experience.
1. The Reign of Patents: “Heavyweight” Valuations
Unsurprisingly, intellectual property (IP) is the central asset in this sector. Unlike other industries where branding dominates, here it is technical protection—patents, software, databases—that creates value.
Income-based approach (DCF & royalties): This is the absolute standard. For biotech companies, we have valued a patent portfolio related to the treatment of neurodegenerative diseases at approximately €137 million. The method consists of projecting long-term global market shares and applying the Relief from Royalty method to isolate the intrinsic value of the patent.
Development stage premium: Value increases significantly as the technology progresses through clinical or regulatory milestones. For a surgical robotics technology developed by a young company, with early-stage commercialization, the portfolio of patents and trademarks was valued at around €14 million to support financing operations.
2. A New Trend: Valuation of Clinical Data
A strong and emerging trend observed in recent engagements (2023–2025) is the transformation of healthcare data into a standalone financial asset. Hospitals and research centers no longer simply share their data—they monetize it. For example, we have been involved in valuing clinical databases in oncology and urology.
The challenge: Quantifying the “entry ticket” for an industrial player seeking access to raw data for R&D purposes. For one of the evaluated databases, the entry value for negotiation was estimated at up to €9.2 million.
3. The Strategy of Territorial Licensing
In the pharmaceutical industry, value is often segmented geographically. Our engagements frequently involve determining royalty rates for specific licensing agreements.
For a biotech company, we established the financial terms of a license granted on certain patented products to a joint venture in China. The result was a distinct valuation for the Chinese territory, €2.16 million, and a separate valuation for the rest of the world.
In another case involving the transfer of ownership stakes, we validated royalty rates ranging from 0.5% to 1.75% of net sales, based on market comparables for applications targeting neurodegenerative diseases. In such situations, case-by-case analysis is required, as client-specific factors often deviate from available benchmarks. Beyond the nature of the asset and the licenses involved, contextual factors also influence the final rate.
4. MedTech & Connected Health: Methodological Convergence
At the intersection of healthcare and software, MedTech requires a hybrid approach.
For medical software or telemedicine solutions, methods are combined:
- Reconstruction cost approach: To secure the technical value of the code.
- DCF approach: To capture deployment potential within healthcare institutions.
This dual approach enabled the valuation of a software solution at approximately €7.1 million in the context of an in-kind contribution.
Conclusion
Valuation in the Healthcare/Biotech sector leaves no room for approximation. It requires handling high discount rates, reflecting clinical risk, and modeling very long life cycles. Whether justifying transatlantic transfer pricing or preparing for fundraising, the financial expert must think as an industrial strategist.
