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Pharma, biotech and medical devices

Pharmaceutical company financial model, built free.

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

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  • No card
  • 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

Develops drugs or biologics through clinical trials and earns product sales, royalties or milestone payments once assets reach market; value comes from the risk-adjusted pipeline and marketed brands.

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 four ways

    Discounted cash flow, trading multiples, 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
Pharmaceutical company sample model.xlsx
The How It Works sheet of the sample pharmaceutical company 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 pharmaceutical company.

  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. What it invests in3 formulas
    Corporate fixed assets
    Capital expenditureRevenuefrom statementsCapex as % of revenueAdditional planned capex
    Corporate fixed assets
    DepreciationDepreciation of the opening asset baseDepreciation of new capex
    Corporate fixed assets
    Closing net book valueOpening net book valueCapital expenditureDepreciation
  4. How it is funded3 formulas
    Debt
    RepaymentsScheduled repaymentsPrepayments from an equity raise and the cash sweep
    Debt
    Closing balanceOpening balanceDrawdownsRepayments
    Debt
    Interest expenseOpening balanceAll-in interest rateshare of the year
  5. 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

25 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.

  • CPI forecastConsensus curve with long-run anchor
  • 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
  • Corporate fixed assetsStraight-line over remaining life
  • DebtAmortising term loan
  • Equity raisingDistribution reinvestment plan
  • Dividends and distributionsPayout of net profit
  • Discounted cash flow valuationDCF on free cash flow to the firm
  • Multiples valuationEV / EBITDA multiple
  • Net asset valueBook net asset value
  • InventoryWeighted average cost
  • Key-metric summaryLast-twelve-month and run-rate metrics
  • Case selectionStackable stress toggles
  • Sum of the partsRegister of parts on mixed bases
  • 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.
  • Capacity and productionFeed × conversion yield
Key numbers

The numbers it tracks.

  1. 01risk-adjusted NPV by asset
  2. 02sum-of-the-parts value per share
  3. 03cash runway
  4. 04peak sales
  5. 05R&D spend
  6. 06patent cliff exposure
Used for

What it is used for.

Also used for
  • Scenarios and sensitivities
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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.