Biotech Company Financial Model
This 20-Year, 3-Statement Excel Biotech Company Financial Model includes revenue streams from Biopharmaceutical Drug sales, Contract Manufacturing, Royalty Revenue, etc. Cost structures, and financial statements to forecast the financial health of your Biotech company. Click here for a Synthetic Biology Model.
20-year Financial Model bundle for a Biotech company
This very extensive 20-Year Biotech Company Model involves detailed revenue projections, cost structures, capital expenditures, and financing needs. This model provides a thorough understanding of the financial viability, profitability, and cash flow position of the centre. Including: 20x Income Statements, Cash Flow Statements, Balance Sheets, CAPEX sheets, OPEX Sheets, Statement Summary Sheets, and Revenue Forecasting Charts with the specified editable revenue streams, BEA charts, sales summary charts, employee salary tabs and expenses sheets. Over 120 spreadsheets of financial data to monitor.
2 Excel Workbooks in 1 zip file: 1 Biotech Company Financial Model, 1 Biotech Facility construction financial model.
Income Statement (Profit & Loss Statement)
Revenue Streams
Biopharmaceutical Drug Sales
Revenue from proprietary drug sales (post-approval).
Segmented by product, geography, or therapeutic area.
Key drivers: price per unit, volume (patients), market share, and penetration rate.
Diagnostic Services
Clinical diagnostics tests offered to hospitals or physicians.
Revenue modeled by number of tests × price/test.
Contract Manufacturing Revenue
Revenue from manufacturing biologics or small molecules for third parties.
Modeled by volume (batches produced) and unit pricing.
Royalty Revenue
Based on agreements with partners using patented tech or licensed drugs.
Typically a percentage of net sales (e.g., 5–12%).
Service Revenue (Lab Services)
Analytical testing, biomarker analysis, clinical trial support.
Project-based or volume-based billing.
BIO R&D Revenue
Sponsored R&D contracts or grants (e.g., NIH, DARPA).
Recognized over time or at milestones.
Diagnostics & Testing Services
Includes proprietary testing platforms (e.g., PCR, genomics).
Revenue per test or bundled diagnostics packages.
Cost of Goods Sold (COGS)
Segmented by revenue line (e.g., cost to manufacture drugs, diagnostic reagents).
Includes:
Raw materials
Lab consumables
Personnel directly involved in production
Facility and depreciation costs
Gross Profit
Revenue – COGS
Gross Margin per revenue stream is useful for assessing profitability.
Operating Expenses
Research & Development (R&D)
Preclinical studies, clinical trials (Phases I–III), regulatory submission.
Salaries for scientists, CRO payments, lab costs.
Capitalized or expensed depending on stage.
Selling, General & Administrative (SG&A)
Commercial team salaries, marketing, legal, finance, HR, office space.
Depreciation & Amortization
From lab equipment, facilities, capitalized IP or licenses.
Other Operating Expenses
Stock-based compensation
IP litigation, licensing fees
Operating Income (EBIT)
Gross Profit – Operating Expenses
Interest and Taxes
Interest Expense: From biotech debt or venture loans.
Interest Income: Cash investments, if applicable.
Tax Expense: May be zero in early years due to losses/NOLs.
Net Income
EBIT – Interest + Other Income – Taxes
Biotech Company Cash Flow Statement
Cash Flow from Operating Activities
Net Income
Adjustments:
Depreciation & amortization
Stock-based compensation
Deferred taxes
Changes in Working Capital:
Accounts receivable
Inventory (especially for diagnostic kits, drug stock)
Accounts payable
Prepaid expenses
Accrued liabilities
Cash Flow from Investing Activities
Capital Expenditures (CapEx):
Lab equipment, diagnostics machinery, facilities.
Acquisition of IP or Licenses
Investment in Joint Ventures or Affiliates
Purchases/Sales of Marketable Securities
Cash Flow from Financing Activities
Issuance of Common Stock / Equity Raises
IPO, follow-on offerings, private placements.
Debt Issuance or Repayment
Interest Payments
Warrants/Options Exercises
Government Grants or Non-Dilutive Funding
Net Change in Cash
Ending Cash = Beginning Cash + Net Cash from Operating + Investing + Financing
Biotech Company Balance Sheet
Assets
Current Assets
Cash and Cash Equivalents
Marketable Securities
Accounts Receivable
Inventory: Raw materials, WIP, finished goods (for drugs or kits).
Prepaid Expenses and Other Current Assets
Non-Current Assets
Property, Plant, Equipment (PP&E): Labs, bioreactors, testing machines.
Intangible Assets: Patents, licenses, acquired IP.
Deferred Tax Assets: From net operating losses.
Goodwill: If acquisitions occurred.
Liabilities
Current Liabilities
Accounts Payable
Accrued Liabilities: CRO payments, R&D trials, payroll.
Deferred Revenue: Upfront from R&D contracts or licensing deals.
Current Portion of Debt
Long-Term Liabilities
Convertible Debt / Venture Loans
Deferred Tax Liabilities
Long-Term Lease Liabilities
Key Financial Metrics for a Biotech Company
Revenue Metrics
Biotech Company Biopharmaceutical Drug Sales
Biotech companies generate significant revenue from the sale of proprietary biopharmaceutical drugs developed through in-house R&D. These drugs often target complex or rare diseases and command premium pricing due to their innovation and therapeutic value. Revenue from drug sales typically becomes substantial following regulatory approval (e.g., FDA, EMA) and commercialization, and is a primary driver of long-term profitability. Revenue forecasting includes pricing, market penetration, patient population, and reimbursement assumptions.
Diagnostic Services from a Biotech Company
Diagnostic services are a growing revenue stream for biotech companies involved in molecular or clinical diagnostics, and these services may include genetic testing, disease screening, or biomarker detection for hospitals, clinics, or research institutions. Revenue is generally based on the number of tests performed multiplied by the fee per test. Diagnostic offerings can be proprietary platforms or standardized assays and often provide recurring revenue once adopted in clinical workflows.
Contract Manufacturing and a Biotech Company
Biotech companies with advanced manufacturing capabilities may offer contract manufacturing services to third-party pharmaceutical or biotech firms, and this includes the production of biologics, small molecules, or cell and gene therapies under cGMP conditions. Revenue is typically derived from volume-based agreements or long-term manufacturing contracts. Contract manufacturing leverages excess capacity and infrastructure to generate additional, stable income while diversifying the business model.
Royalty Revenue Gains For A Biotech Company
Royalty revenue for a biotech company stems from licensing proprietary technologies or drug candidates to partners, who then commercialize the products. The biotech company earns a percentage of the partner’s net sales, often ranging from 5% to 12%. This non-operational income can be significant, especially when the licensed product achieves global commercial success. Royalties provide high-margin, recurring revenue without ongoing operational cost burdens.
Service Revenue And Biotech Company
(Lab Services)
Biotech companies frequently offer lab services such as biomarker analysis, assay development, or clinical trial support. These services are marketed to pharmaceutical companies, academic institutions, or contract research organizations (CROs). Service revenue is generally project-based or fee-for-service and can scale with demand for outsourced R&D. This stream helps monetize excess lab capacity and strengthens relationships with potential partners.
BIO R&D Revenues For A Biotech Company
Some biotech companies receive R&D revenue through partnerships, government grants, or collaborative research agreements. This revenue supports early-stage development and is typically recognized as milestones are achieved or work is performed. Examples include NIH or BARDA grants, co-development deals, or sponsored preclinical and clinical work. BIO R&D revenue helps offset development costs and reduces reliance on equity financing.
Biotech Company Diagnostics & Testing Services
Biotech companies offering diagnostics and testing services may generate revenue from proprietary platforms such as PCR-based tests, genomic sequencing, or companion diagnostics. These services are provided to healthcare providers, laboratories, or clinical researchers. The revenue is often volume-based and benefits from recurring demand, particularly when tests are integrated into disease management protocols. This segment is essential for companies focused on personalized medicine.
Final Notes on the Financial Model
This 20-Year Biotech Company Financial Model must focus on balancing capital expenditures with steady revenue growth from diversified bio managed services. And so by optimizing operational costs, and power efficiency, and maximizing high-margin services like drug sales and diagnostics, the model ensures sustainable profitability and cash flow stability.
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