Author:
Blankenagel Michael,Canci Jung Kyu,Mekler Philipp
Abstract
AbstractThe chapter describes value creation and valuation under structural uncertainty in the healthcare and pharma industries. These risks and uncertainties can significantly influence organizational performance, value creation and long-term sustainability. The discussion continues by comparing traditional valuation concepts used in finance with the requirements posed by the current situation of healthcare business. In particular, patent valuation is a critical business issue, and the value of pharma patents and licensing deals has risen markedly in recent years. Existing evaluation approaches do not consider a patent’s life cycle, an important and unique characteristic of pharma and biotech patents. For this reason, the inherent uncertainty in a patent’s value is modelled as a stochastic process.
Publisher
Springer International Publishing
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