Scribd Logo
Upload

Welcome to Scribd!

  • 1K views

    Case 3 - Pharmacyclics Group 6

    Uploaded by

    davidsison
    This case analysis examines the options available to Pharmacyclics CEO Dr. Richard Miller for financing ongoing drug research and development. The company has been offered $60 million in equity but must decide whether to sell now or wait until one of their drugs receives FDA approval. The analysis identifies decision tools to evaluate the uncertainties of new innovations and compares the advantages and disadvantages of alternatives like selling now, waiting for approval, or staggered sales. It recommends using real options models to evaluate keeping flexibility through staged financing versus fully committing funds from an immediate sale.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd

    Case 3 - Pharmacyclics Group 6

    Uploaded by

    davidsison
    1K views3 pages
    This case analysis examines the options available to Pharmacyclics CEO Dr. Richard Miller for financing ongoing drug research and development. The company has been offered $60 million in equity but must decide whether to sell now or wait until one of their drugs receives FDA approval. The analysis identifies decision tools to evaluate the uncertainties of new innovations and compares the advantages and disadvantages of alternatives like selling now, waiting for approval, or staggered sales. It recommends using real options models to evaluate keeping flexibility through staged financing versus fully committing funds from an immediate sale.

    Original Title

    Case 3 - Pharmacyclics Group 6

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    DOC, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This case analysis examines the options available to Pharmacyclics CEO Dr. Richard Miller for financing ongoing drug research and development. The company has been offered $60 million in equity but must decide whether to sell now or wait until one of their drugs receives FDA approval. The analysis identifies decision tools to evaluate the uncertainties of new innovations and compares the advantages and disadvantages of alternatives like selling now, waiting for approval, or staggered sales. It recommends using real options models to evaluate keeping flexibility through staged financing versus fully committing funds from an immediate sale.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    1K views3 pages

    Case 3 - Pharmacyclics Group 6

    Uploaded by

    davidsison
    This case analysis examines the options available to Pharmacyclics CEO Dr. Richard Miller for financing ongoing drug research and development. The company has been offered $60 million in equity but must decide whether to sell now or wait until one of their drugs receives FDA approval. The analysis identifies decision tools to evaluate the uncertainties of new innovations and compares the advantages and disadvantages of alternatives like selling now, waiting for approval, or staggered sales. It recommends using real options models to evaluate keeping flexibility through staged financing versus fully committing funds from an immediate sale.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 3

    DE LA SALLE UNIVERSITY

    Graduate School of Business

    Pharmacyclics: Financing Research & Development


    A Case Analysis

    In Partial Fulfillment
    Of the Course Requirement In

    Technology Strategy and Management

    Submitted to:

    Prof. Reynaldo C. Lugtu Jr.

    Submitted by:

    Chua, John Harold


    Lopena, Cleo C.
    Sison, David P.
    Guerrero, Rachel

    January 28, 2011

    Statement of the Problem:

    What would be the basis for CEO Dr. Richard Miller to decide whether to sell the $60
    million equity for financing the ongoing drug innovation’s research and
    development?
    De La Salle University
    Professional School Inc.

    Objectives:

    • To identify appropriate decision tools to use to control uncertainties of new


    innovations
    • To compare advantages and disadvantages of each decision making tool
    • To recommend and review possible options in relation to choosing a
    strategy to finance its research & development projects

    Areas of Consideration / Major Assumptions:

    • CEO Dr. Richard Miller is taken as the point of view


    • .

    Theoretical Framework:

    Alternative Courses of Action

    ACA#1 – to sell the 60 million now

    Framework – real options - david

    ACA #2 – to wait until Xcytrin is FDA approved

    Framework – Use REAL OPTIONS MODEL. Using all products as well

    ACA #3- to sell the 60 million on staggered basis for the next 3?4? years

    Framework – decision tree .options instead of product 1 (xcytrin) - rachel

    Recommendation

    Action Plan
    2|Page
    De La Salle University
    Professional School Inc.

    3|Page

    You might also like