{"title":"Microcap pharmaceutical firms: linking drug pipelines to market value.","authors":"Robert Beach","doi":"","DOIUrl":null,"url":null,"abstract":"<p><p>This article examines predictors of the future market value of microcap pharmaceutical companies. This is problematic since the large majority of these firms seldom report positive net income. Their value comes from the potential of a liquidity event such as occurs when a key drug is approved by the FDA. The typical scenario is one in which the company is either acquired by a larger pharmaceutical firm or enters into a joint venture with another pharmaceutical firm. Binary logistic regression is used to determine the impact of the firm's drug treatment pipeline and its investment in research and development on the firm's market cap. Using annual financial data from 2007 through 2010, this study finds that the status of the firm's drug treatment pipeline and its research and development expenses are significant predictors of the firm's future stock value relative to other microcap pharmaceutical firms.</p>","PeriodicalId":56181,"journal":{"name":"Journal of Health Care Finance","volume":"39 2","pages":"82-92"},"PeriodicalIF":0.0000,"publicationDate":"2012-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Health Care Finance","FirstCategoryId":"1085","ListUrlMain":"","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q4","JCRName":"Medicine","Score":null,"Total":0}
引用次数: 0
Abstract
This article examines predictors of the future market value of microcap pharmaceutical companies. This is problematic since the large majority of these firms seldom report positive net income. Their value comes from the potential of a liquidity event such as occurs when a key drug is approved by the FDA. The typical scenario is one in which the company is either acquired by a larger pharmaceutical firm or enters into a joint venture with another pharmaceutical firm. Binary logistic regression is used to determine the impact of the firm's drug treatment pipeline and its investment in research and development on the firm's market cap. Using annual financial data from 2007 through 2010, this study finds that the status of the firm's drug treatment pipeline and its research and development expenses are significant predictors of the firm's future stock value relative to other microcap pharmaceutical firms.
期刊介绍：
The Journal of Health Care Finance is the only quarterly journal devoted solely to helping you meet your facility"s financial goals. Each issue targets a key area of health care finance. Stay alert to new trends, opportunities, and threats. Make easier, better decisions, with advice from industry experts. Learn from the experiences of other health care organizations. Experts in the field share their experiences on successful programs, proven strategies, practical management tools, and innovative alternatives. The Journal covers today"s most complex dollars-and-cents issues, including hospital/physician contracts, alternative delivery systems, generating maximum margins under PPS.
求助内容：
应助结果提醒方式：
京公网安备 11010802042870号
