MSc Pharmaceutical Industrial Advanced Training (PIAT) / Course details

Year of entry: 2020

Course unit details:
Financial Aspects of Business Development & Licensing

Unit code PHAR71420
Credit rating 15
Unit level FHEQ level 7 – master's degree or fourth year of an integrated master's degree
Teaching period(s) Variable teaching patterns
Offered by Pharmacy
Available as a free choice unit? No

Overview

This unit will cover basic financial concepts and the key tools required for financial modelling of deals. The other sections of this unit will include valuation techniques, building sales forecasts, current deal trends and the management of risk. 

Aims

  • To develop an understanding of the basic financial and accounting concepts, with emphasis on application in a pharmaceutical and biotechnology business development and licensing context. 
  • To provide an appreciation of the sources of finance available to companies and the impact it has on deal structures.
  • To develop an understanding of financial modelling techniques to evaluate different types of licensing and business development deals.
  • To provide an appreciation of valuation techniques and their applicability in different situations.
  • To develop a practical capability to undertake financial modelling and valuations for different types of business development deals.
  • To provide an appreciation of trends in deal values for different types of deals. 
  • To provide an appreciation of accounting treatment, currency and tax and the effect on deal valuations and negotiations.

Learning outcomes

  • Recognise the key components of published corporate financial information and distinguish between their principal functions whilst reviewing the key conceptual issues which underpin the production of the information.
  • Undertake a range of calculations to demonstrate the financial strengths and weaknesses of pharmaceutical businesses, to recognise the limitations of such information and to communicate the information in an appropriate manner.
  • Explain the nature and importance of internal business costs and cost behaviour within a typical pharmaceutical business and construct information relevant for internal decision-making in different deal scenarios.
  • Contrast the different means by which pharmaceutical business raise their finance and appraise the impact of such finance on the cost of capital of the organisation and its effect on appraisals of company value and deal structures.
  • Demonstrate ability to use a computer spreadsheet to produce financial information using a number of methodologies in order to value a business proposal and to appraise critically the strengths and weaknesses of the information and methodologies used, including the impact of risk on the outcome.
  • Understand a number of critical financially related ‘deal’ terms and evaluate critically ‘deal’ and ‘valuation’ data for a number of different scenarios from the viewpoint of both the buyer/licensee and the seller/licensor and communicate the information to a required audience in an appropriate manner.

Assessment methods

Method Weight
Written assignment (inc essay) 100%

Assessed by 1 x 6000 word essay

Feedback methods

Provisional marks and feedback for coursework returned within 15 working days.

Exam marks and final marks returned after ratification at exam board. 

Study hours

Independent study hours
Independent study 150

Teaching staff

Staff member Role
Matthew Shaw Unit coordinator

Return to course details