The impact of firm strategies on stock market value in the biotechnology industry

Noah Patrick Stefanec

Applied Financial Economics, 2010, vol. 21, issue 5, 343-352

Abstract: To what degree do stock holders extend or withhold external finance to or from publicly traded biotech firms and why? To address this question, two firms are considered here; the results suggest that the most significant events favourably altering investor valuation of firms in the diagnostic segment of the biotechnology market are those which are distributional and knowledge-gathering in nature. Buyouts of firms in the therapeutic segment of the biotechnology market play a large role in the extraction of external finance, particularly because the purchasing of another firms' previous labours can significantly lower the costs of bringing new products to market.

Date: 2010
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DOI: 10.1080/09603107.2010.530214

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