Determining the value of drug development candidates and technology platforms

Journal of Commercial Biotechnology

Volumn 11, Issue 2, 2005, Pages 155-170

  Bode Greuel, Kerstin M ^a   Greuel, Joachim M ^a  

^a Bioscience Valuation BSV GmbH   (Germany)

Author keywords

Biotechnology; Drug development; Real options; Technology platforms; Valuation

Indexed keywords

DECISION MAKING; INVESTMENTS; PROJECT MANAGEMENT;

DRUG DEVELOPMENT; LICENSING NEGOTIATIONS; NET PRESENT VALUE (NPV); PORTFOLIO MANAGEMENT;

DRUG PRODUCTS;

ANTINEOPLASTIC AGENT; CISPLATIN; TAXANE DERIVATIVE;

ALGORITHM; ARTICLE; BIOTECHNOLOGY; CLINICAL STUDY; CLINICAL TRIAL; COST BENEFIT ANALYSIS; DECISION MAKING; DRUG MANUFACTURE; DRUG RESEARCH; ECONOMIC DEVELOPMENT; ECONOMIC EVALUATION; FINANCIAL MANAGEMENT; HEALTH CARE COST; HUMAN; INVESTMENT; LICENSING; MARKETING; MONTE CARLO METHOD; NONBIOLOGICAL MODEL; OVARY CANCER; PROBABILITY;

EID: 14044257881     PISSN: 14628732     EISSN: None     Source Type: Journal    
DOI: 10.1057/palgrave.jcb.3040113     Document Type: Article

References (21)

1. Nichols, N. A. (1994), 'Scientific management at Merck: An interview with CFO Judy Lewent', Harvard Business Rev., Vol. 1, pp. 88-99.
2. Matheson, D. and Menke, M. M. (1995), 'Best-practice decision making in R&D', Scrip Magazine, July/August, pp. 34-37.
3. Bode-Greuel, K. M. (1997), 'Financial project evaluation and risk analysis in pharmaceutical development', Scrip Reports, BS 890, PJB Publications, Richmond.
4. Sharpe, P. and Keelin, T. (1998), 'How SmithKline Beecham makes better resource-allocation decisions', Harvard Business Rev., Vol. 2, pp. 45-57.
5. Stewart, J. J., Allison, P. N. and Johnson, R. S. (2001), 'Putting a price on biotechnology', Nature Biotechnol., Vol. 19, pp. 813-817.
6. Greuel, J. M. (2002), 'The R&D value conundrum', Current Drug Discovery, July, pp. 37-42.
7. Greuel, J. M. (2004), 'Assessing the economics of biogenerics', J. Generic Med., in press.
8. Bode-Greuel, K. M. (2000), 'Real options evaluation in pharmaceutical R&D: A new approach to financial project evaluation', Scrip Reports, BS 1038, PJB Publications, Richmond.
9. Loch, C. H. and Bode-Greuel, K. M. (2001), 'Evaluating growth options as sources of value for pharmaceutical research projects', R&D Manage., Vol. 31(2), pp. 231-248.
10. Brealey, R. A. and Myers, S. C. (2003), 'Principles of Corporate Finance', McGrawHill, New York, pp. 2-58.
11. 10. Brealey, R. A. and Myers, S. C. (2003), 'Principles of Corporate Finance', McGrawHill, New York, pp. 151-220.
12. European Private Equity & Venture Capital Association (2004), 'Final net long-term returns for European private equity show slight decrease on 2002, short-term returns indicate signs of recovery', Berlin, 3rd June.
13. Meergans, M. (2003), 'The cost of capital in the pharmaceutical industry: Are beta-factors useful in risk correlations?', Master Thesis, University of Witten/Herdecke, Germany.
14. Myers, S. (1996), 'Measuring pharmaceutical risk and the cost of capital', in Sussex, J. and Marchant, N., 'Risk and Return in the Pharmaceutical Industry', Office of Health Economics, London, pp. 59-76.
15. URL: www.tufts.edu/med/research/csdd
16. URL: www.cmr.org
17. Kellogg, D. and Charnes, J. M. (2000), 'Real-options valuation for a biotechnology company', Assoc. Investment Manage. Res. May/June, pp. 76-84.
18. Brach, M. A. and Paxson, D. A. (2001), 'A gene to drug venture: Poisson options analysis', R&D Manage., Vol. 31(2), pp. 203-214.
19. Schwartz, E. S. and Moon, M. (2000), 'Evaluating research and development investments', in Brennan, M. J. and Trigeorgis, L., 'Project Flexibility, Agency, and Competition', Oxford University Press, New York, pp. 85-106.
20. Smith, J. E. and Nau, R. F. (1995), 'Valuing risky projects: Option pricing theory and decision analysis', Manage. Sci., May, pp. 795-816.
21. Brach, M. (2003), 'Real options in practice', Wiley Finance, New Jersey, pp. 95-103.