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Pharma, biotech and medical devices

Clinical-stage biotech financial model, built free.

A three-statement Excel model for a clinical-stage biotech, built from your own figures and checked to balance.

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  • Usually ready within the hour

We use generative AI in parts of our process, so mistakes can occur. Every model should be checked by a person before it is relied on. Read more

The business

Pre-revenue developer of one or a few drug candidates in clinical trials, funded by equity raisings, R&D tax incentives and partnering deals, valued on the risk-adjusted NPV of its pipeline and judged on cash runway.

See the sampleHow the model works

In short

  • 01

    Three linked statements

    Income statement, balance sheet and cash flow, linked in every period.

  • 02

    Valued two ways

    Sum of the parts and net asset value, side by side.

  • 03

    Monthly to annual

    Monthly, quarterly, half-yearly or annual periods, for up to 30 years.

  • 04

    Checked every period

    A Checks sheet shows the balance sheet balances and the cash reconciles.

The sample

The sample, as Excel draws it.

Built by the same system and checks as yours: its structure and its inputs, ready for your own figures.

Annual · 10 years · Low detail
Clinical-stage biotech sample model.xlsx
The How It Works sheet of the sample clinical-stage biotech model

The sample describes no real business. Yours is calibrated to your own figures, so its results are your business’s.

How it works

How the model works for a clinical-stage biotech.

  1. How it earns revenue3 formulas
    Commercialisation and deal economics · All drug assets
    Product revenueIn-market net sales after loss of exclusivity (unrisked)from loss of exclusivity (patent cliff)Cumulative probability of launchfrom clinical and regulatory pipeline
    Commercialisation and deal economics · All drug assets
    Cost of goods soldProduct revenueCost of goods sold (share of revenue)
    Commercialisation and deal economics · All drug assets
    Selling, marketing and medical costsProduct revenueSelling, marketing and medical costs (share of revenue)
  2. What drives its costs3 formulas
    Operating expenses · Across the business
    Total FTEsOperations and deliverySales and marketingTechnologyFinance, HR and administration
    Operating expenses · Across the business
    Total average FTEsOperations and deliverySales and marketingTechnologyFinance, HR and administration
    Operating expenses · Across the business
    Total staff costsSalariesOn-costsOther costs per FTE
  3. How it is funded1 formula
    Equity raising
    Equity raisedDistributions reinvested under the DRPOther equity raised (net of costs)Equity from an offer, milestone funding, conversions and creditor shares
  4. How profit becomes cash3 formulas
    Working capital
    Trade receivablesRevenuefrom statementsDebtor daysDays in period
    Working capital
    InventoryDirect costs (positive)from statementsInventory daysDays in period
    Working capital
    Trade payablesCash operating costs (positive)from statementsCreditor daysDays in period
What it covers

22 parts, each one tested.

Every part is a tested building block with its own checks: yours is put together from the ones your business needs.

  • Exchange rate (US dollar)Exchange rate by financial year
  • Operating expensesHeadcount build by function
  • Corporate costsFixed cost base indexed to CPI
  • Working capitalFull working capital
  • Income taxCorporate rate with tax losses
  • Equity raisingDistribution reinvestment plan
  • Net asset valueBook net asset value
  • Key-metric summaryLast-twelve-month and run-rate metrics
  • Case selectionStackable stress toggles
  • Value per shareTreasury-stock method
  • Sum of the partsRegister of parts on mixed bases
  • Cap tableShare ledger by class and round
  • Burn and runwayRunway to the forecast cash-out date
  • Milestone and runway-based fundingTranches released on milestones
  • CPI forecastCPI glide path
  • Enterprise value to equity bridgeNet debt at the valuation date
  • Clinical and regulatory pipelinePhase durations and benchmark probabilitiesPhase timing, regulatory milestones and the probability that each asset reaches market.
  • Sales forecast and launch curveIn-market product trendIn-market net sales of each asset before loss of exclusivity and before risking.
  • Loss of exclusivity (patent cliff)Erosion curve after expiryErosion of in-market sales after patents and regulatory exclusivity expire and generics or biosimilars enter.
  • Commercialisation and deal economicsOwn sales with margin ratiosHow each asset's sales reach the company — own product sales with their costs, or upfront, milestone, royalty and profit-share income from partners.
  • Clinical development costsCost per phaseResearch, clinical trial, manufacturing-development and regulatory costs for each asset, and any R&D tax incentive earned on them.
  • Risk-adjusted asset value (rNPV)Risk-adjusted NPVValue of each pipeline or marketed asset, summed into a sum-of-the-parts valuation.
Key numbers

The numbers it tracks.

  1. 01rNPV by asset
  2. 02risk-adjusted value per share
  3. 03cash runway
  4. 04R&D spend by trial
  5. 05next readout
  6. 06funding required
Used for

What it is used for.

Also used for
  • Scenarios and sensitivities
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See a finished model, sheet by sheet

The sample is built on illustrative figures and describes no real business. Models are calculations prepared from the information you provide. They are not financial advice and must be independently verified. See our terms.