Case Study: Captum Capital Limited achieves accurate risk-adjusted (rNPV) valuations of early-stage life‑science technologies with Palisade's DecisionTools Suite (@RISK)

The DecisionTools Suite Helps Value Early Stage Technology for Life Science Companies

Captum Capital Limited is a consulting firm specializing in valuation of early‑stage life science and healthcare companies, where long development timelines and high failure rates (only ~20% of drugs entering trials reach market) make valuation difficult. To address this, Captum uses Palisade’s DecisionTools Suite—notably @RISK (and PrecisionTree)—to incorporate risks, timing, and milestone probabilities into spreadsheet valuation models.

Using Palisade’s tools, Captum models product development from concept to market with PERT, discrete/binomial and log‑normal distributions, producing Risk‑Adjusted Net Present Value (rNPV) outputs along with 90% confidence ranges and tornado sensitivity charts. The Palisade solution made rNPV calculation straightforward, improved communication of uncertainty for investors and licensees, and is used both in client engagements and Captum’s MasterClass training to support investment and licensing decisions.

Captum Capital Limited

Michael Brand

Director