Value drivers of development stage biopharma companies

Daniel Tobias Michaeli (), Hasan Basri Yagmur, Timur Achmadeev and Thomas Michaeli
Additional contact information
Daniel Tobias Michaeli: Heidelberg University
Hasan Basri Yagmur: Technical University of Munich
Timur Achmadeev: Technical University of Munich
Thomas Michaeli: Heidelberg University

The European Journal of Health Economics, 2022, vol. 23, issue 8, No 3, 1287-1296

Abstract: Abstract Objective Scholars previously estimated research and development (R&D) costs of the internal drug development process. However, little is known about the costs and value arising from externally acquired therapeutics. This study identifies and estimates the magnitude of factors associated with Biopharma acquisition value. Methods SDC Thomson Reuter and S&P Capital IQ were screened for majority acquisitions of US and EU Biopharma companies developing new molecular entities for prescription use (SIC code: 2834) from 2005 to 2020. Financial acquisition data were complemented with variables characterizing the target’s product portfolio extracted from clinicaltrials.gov, Drugs@FDA database, US SEC filings, and transaction announcements. A multivariate regression assesses the association of firm value with extracted variables. Results 311 acquisitions of companies developing prescription drugs were identified over the study period. Acquirers paid 37% (p

Keywords: Multi-indication; Pharmaceutical policy; Orphan; Valuation; Acquisitions; Drug development (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://link.springer.com/10.1007/s10198-021-01427-5 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:eujhec:v:23:y:2022:i:8:d:10.1007_s10198-021-01427-5

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/10198/PS2

DOI: 10.1007/s10198-021-01427-5

Access Statistics for this article

The European Journal of Health Economics is currently edited by J.-M.G.v.d. Schulenburg

More articles in The European Journal of Health Economics from Springer, Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().