| Registro completo |
| Provedor de dados: |
AgEcon
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| País: |
United States
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| Título: |
VALUATION OF BIOTECHNOLOGY COMPANIES: REAL OPTIONS APPROACH UNDER UNCERTAINTY
VREDNOVANJE PREDUZEĆA IZ OBLASTI BIOTEHNOLOGIJE: PRISTUP REALNIH OPCIJA U USLOVIMA NEIZVESNOSTI
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| Autores: |
Ljumovic, Isidora
Cvijanovic, Janko
Lazic, Jelena
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| Data: |
2012-05-28
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| Ano: |
2012
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| Palavras-chave: |
Risk
Real options
Valuation
Biotechnology
Agribusiness
Risk and Uncertainty
D04
D81
L65
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| Resumo: |
Review article
Biotechnology is one of the most intensive industries in the past few decades. Essence of their operations leads to problem of determining the value of biotechnology companies, because in addition to their existing value, future product, market opportunities and intangible assets are difficult to value. Biotech companies don’t have a standard format, and simple techniques, such as financial statements analysis or discounted cash flows cannot be applied. Due to the complexity of their work and high levels of risk, alternative method such as real options is applied. The concept of financial options can be extended to the valuation of investment opportunities in commercial companies, especially in biotech. This paper explains how real options provide various perspectives on the project (investment) value in relation to situations in which the project is: delayed, expanded, abandoned, business is contracted, operations are switched, products with multiple applications are grown, and optimal date for the product launch is determined.
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| Tipo: |
Article
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| Idioma: |
Inglês
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| Identificador: |
ISSN 0352-3462
UDC 338.43:63
CIP 33:63(497.11)
COBISS.SR-ID 27671
http://purl.umn.edu/123958
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| Relação: |
Economics of Agriculture>Volume 59, Number 1, January-March 2012
Economics of Agriculture 1/2012
UDC: 330.322.54:663.18
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| Formato: |
12
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