Kura oncology - Financial and Market Due Diligence

Oncology:[pic 1]

                                                        Normal cell[pic 2]

                                                         Unwanted cell growth[pic 3]

                                                   Tumor

Kura Oncology-Financial and Market Due Diligence: 

Financial and market due diligence is key to informed decision making. What are the avenues of growth? What is the source of growth initiatives? What should be the best setting and structure for output?  

Compared to Oncology sales which have doubled over past ten years with 12% average annual growth total pharmaceutical industry sales growth was 6% over the same period of time. The expected sales growth of oncology is more than any other therapeutic area. Market size is expected to double itself again by the end of 2017 (IMS Oncology Trend Report, 2014). Given the height of economic cost, rising and aging global population indicates that cancer is going to be the top priority in years to come. Corporate sector being well aware has the most number of drug development projects in pipeline against cancer. Kura Oncology seems to follow the suit as evidenced by its recent IPO of $50,000,000. There seems sufficient market background to trigger substantial amount of long-term equity finance.

Bio-technology combined with research and development are core competences in pharmaceutical industry. About 40% of the revenue in pharmaceutical industry is originated from in-licensed drugs while share of bio-technology companies and ancillary research facilities in pharmaceutical revenue has increased from 10% to 50% over the past the years (Nature Reviews Drug Discovery, 2010).  This bio-tech growth is expected in future representing that Kura Oncology is going to investing in the best setting and structure for output.                        

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                                                Oncology Leads in High Value Trade Sales

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                                             Source: Silicon Valley Bank: Trends in Healthcare Investments and Exits, 2014

                                                Average Trade Sale Value at Time of Exit[pic 6][pic 7]

        Source: Silicon Valley Bank: Trends in Healthcare Investments and Exits, 2014