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RNA Insights

Client Success: Derivatives Valuation for pre-IPO Biotechnology Company


A development stage biotechnology company (considering an IPO in the near future) entered into a series of financings which required the valuation of components of the financings deemed to be a derivative for financial reporting purposes.


RNA worked with the company and their Big 4 auditor to develop a Monte Carlo framework to address the issues of path dependence implicit in the analysis (precluding simpler solutions with Black Scholes or lattice constructs).  An open and transparent dialogue with the company and the auditor ensured the engagement was completed in a timely manner, in advance of the company’s deadlines.

“Thank you for being so responsive and helping us work through this process.  We will definitely use you again.” – CFO

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