 Bio-pharma: A financialized business modelTord Andersson, Pauline Gleadle, Colin Haslam and Nick Tsitsianis CRITICAL PERSPECTIVES ON ACCOUNTING, 2010, vol. 21, issue 7, 631-641 Abstract: In this paper, we construct a complementary financialized business model of SME bio-pharma that reveals how the product innovation and development process conjoins with speculative forces in capital markets. To conceptualise this descriptive business model we employ three organising elements: narratives about pipeline progress that may (or may not) lead to additional funding from equity investors or other investing partners, capital market conditions that impact on the supply of funding and market valuations and the variable motivations of equity investors who are not in a development marathon but a relay race anxious to pass on ownership and extract higher returns on invested capital through realised market value. Bio-pharmas are, in effect, constituted as investment portfolios of innovations where products in pipeline and firms trade for shareholder value. In this speculative innovation, capital market liquidity business model complementary narratives and favourable capital market conditions are required to keep it all going. Keywords: Bio-pharma; Financialization; Business model; Shareholder value (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:crpeac:v:21:y:2010:i:7:p:631-641 DOI: 10.1016/j.cpa.2010.06.006 Access Statistics for this article CRITICAL PERSPECTIVES ON ACCOUNTING is currently edited by Marcia Annisette, Christine Cooper and Yves Gendron More articles in CRITICAL PERSPECTIVES ON ACCOUNTING from Elsevier |
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