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ABPI Annual Review
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ABPI1
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84951721991
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Sustaining the strength of the UK in healthcare and life sciences R&D: competition, cooperation and cultural change
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London 24–25 October, ScienceBridge, London
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Anderson, J. and Fears, R. (1996) ‘Sustaining the strength of the UK in healthcare and life sciences R&D: competition, cooperation and cultural change’, A report on the Third SmithKline Beecham R&D Policy Symposium, London 24–25 October, ScienceBridge, London.
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A report on the Third SmithKline Beecham R&D Policy Symposium
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Anderson, J.1
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84951721992
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Britain – survey of pharmaceuticals
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24 April (supplement), p.2 and p.5
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Green, D. (1997) ‘Britain – survey of pharmaceuticals’, Financial Times, 24 April (supplement), p.2 and p.5.
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Financial Times
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Green, D.1
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A shift to external alliances for product development in the pharmaceutical industry
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Whittaker, E. and Bower, D.J. (1994) ‘A shift to external alliances for product development in the pharmaceutical industry’, R&D Management, Vol. 24, No. 3, pp.249–260.
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R&D Management
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Whittaker, E.1
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84951721994
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Glaxo Wellcome
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5 December
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Sykes, R. (1995) ‘Glaxo Wellcome’, Financial Times, 5 December.
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Financial Times
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Burrill and Caves
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Financial Times
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Why venture capital will fund industrial biotechnologies soon
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Davidson, S.1
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84951721996
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Biggadike (34) noted that it took on average eight years for an innovative product of a major US corporation to break even and twelve before the profitability of such a product reached the average level of the company as a whole. Analyses of the US pharmaceutical company, Merck & Co., by Lewent and Kearney (35) and Nichols (36) make a similar point about the long lags which often exist between the inception and payoff of innovative products. Pharmaceutical companies anticipate such lags in the strategic management of their portfolios of products and consequently do not reject innovations on the basis of the traditional discounted cash flow (DCF) project appraisal technique, which discounts distant uncertain payoffs very heavily because the evaluation ignores the strategic benefits of the investment and concentrates on the analysis of single product cash flows as if the firm had no other products
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Biggadike (34) noted that it took on average eight years for an innovative product of a major US corporation to break even and twelve before the profitability of such a product reached the average level of the company as a whole. Analyses of the US pharmaceutical company, Merck & Co., by Lewent and Kearney (35) and Nichols (36) make a similar point about the long lags which often exist between the inception and payoff of innovative products. Pharmaceutical companies anticipate such lags in the strategic management of their portfolios of products and consequently do not reject innovations on the basis of the traditional discounted cash flow (DCF) project appraisal technique, which discounts distant uncertain payoffs very heavily because the evaluation ignores the strategic benefits of the investment and concentrates on the analysis of single product cash flows as if the firm had no other products.
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13
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Biotechnology: can the UK sustain its competitive advantage?
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Walker, M. and Southworth, A. (1996) ‘Biotechnology: can the UK sustain its competitive advantage?’, Management and Accounting, November, pp.22–26.
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Valuing and evaluating: assessment of the value of R&D in creating national and corporate prosperity
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London 31 October- 2 November, Cross & Associates, London
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Are prescription drug prices too high?
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Why crash pharmaceutical research?
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Gittins, J.1
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The allocation of resources for R&D in the world’s leading pharmaceutical companies
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Halliday, R.G., Drasdo, A.L., Lumley, C.E. and Walker, S.R. (1997) ‘The allocation of resources for R&D in the world’s leading pharmaceutical companies’, R&D Management, Vol. 27, No. 1, pp.63–77.
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Halliday, R.G.1
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Internal and external financial constraints on investment in innovation and technology
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P. Swan (ed.,) Routledge
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Managing technology and innovation: a review
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Berry, M.M. and Taggart, J.H. (1994) ‘Managing technology and innovation: a review’ R&D Management, Vol. 24, No. 4, pp.341–353
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What we know about the strategic management of technology
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The value of an option to exchange one asset for another
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Today’s options for tomorrow’s growth
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Real options
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Better risk management: a key to improved performance
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She argued that developing new products “is a risky business because pharmaceuticals have a long development cycle and require a lot of investment” before they even begin to generate sales; “some products,” she added, “can spend 13 years in development and never hit the market.”
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She argued that developing new products “is a risky business because pharmaceuticals have a long development cycle and require a lot of investment” before they even begin to generate sales; “some products,” she added, “can spend 13 years in development and never hit the market.”
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32
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84951722000
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Therefore they selected a mix of products with varying risks of commercial success and aimed at a variety of markets; they did not “put all their eggs in the one basket”
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Therefore they selected a mix of products with varying risks of commercial success and aimed at a variety of markets; they did not “put all their eggs in the one basket”.
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33
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84951722001
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This procedure also limited the downside risk faced by the firm since it reduced the amount of funds which the case study company had to invest in a new product
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This procedure also limited the downside risk faced by the firm since it reduced the amount of funds which the case study company had to invest in a new product.
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The risky business of diversification
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