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Pharma, biotech and medical devices

Pharmaceutical royalty investor financial model, built free.

A three-statement Excel model for a pharmaceutical royalty investor, 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

Buys royalty interests and synthetic royalties on marketed and late-stage drugs from inventors, universities and biotechs, earning a share of product sales and funding purchases with equity and debt.

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

    Discounted cash flow 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 royalty investor sample model.xlsx
The How It Works sheet of the sample pharmaceutical royalty investor 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 royalty investor.

  1. How it earns revenue3 formulas
    Royalty purchases and income · All drug assets
    Royalty incomeRoyalties on the period's salesDays in the royalty term in the periodDays in periodCumulative probability of launch
    Royalty purchases and income · All drug assets
    Closing royalty assetOpening royalty assetRoyalty interests purchasedAmortisation of the royalty asset
    Royalty purchases and income · All drug assets
    Royalty cash receivedOpening royalties receivableRoyalty incomeClosing royalties receivable
  2. What drives its costs1 parts
    Corporate costs
  3. 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
  4. How profit becomes cash3 formulas
    Income tax
    Closing tax lossesOpening tax lossesLosses usedLosses added
    Income tax
    Income tax expenseTaxable profitCorporate tax rate
    Income tax
    Closing tax payableOpening tax payableIncome tax expenseTax paid
What it covers

16 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
  • Corporate costsFixed cost base indexed to CPI
  • Income taxCorporate rate with tax losses
  • DebtAmortising term loan
  • Equity raisingDistribution reinvestment plan
  • Dividends and distributionsPayout of net profit
  • Discounted cash flow valuationDCF on free cash flow to the firm
  • Net asset valueBook net asset value
  • Key-metric summaryLast-twelve-month and run-rate metrics
  • Covenant tests and headroomLVR, gearing and ICR for property
  • Case selectionStackable stress toggles
  • Interest-rate forecastMarket forward curve
  • CPI forecastCPI glide path
  • 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.
  • Royalty purchases and incomeRoyalty rate tiers × product salesRoyalty interests bought on a drug's sales — the purchase price, cash royalties received and income recognised on the royalty asset.
Key numbers

The numbers it tracks.

  1. 01royalty receipts by product
  2. 02capital deployed
  3. 03portfolio yield
  4. 04portfolio duration
  5. 05net debt
  6. 06value per share
Used for

What it is used for.

Also used for
  • Asset acquisition
  • Closed-end fund, syndicate or trust
  • Scenarios and sensitivities
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Looking for a pharmaceutical royalty investor financial model template? Ours arrives built for your business, with your figures in it.

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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.