Valuation and Returns of Drug Development Companies: Lessons for Bioentrepreneurs and Investors.

ABSTRACT:

Objectives

This study evaluates the association of Biopharma company valuation with the lead drug's development stage, orphan status, number of indications, and disease area. We also estimated annual returns Bioentrepreneurs and investors can expect from founding and investing in drug development ventures.

Methods

SDC Thomson Reuter and S&P Capital IQ were screened for majority acquisitions of US and EU Biopharma companies developing new molecular entities for prescription use (SIC code: 2834). Acquisition data were complemented with drug characteristics extracted from clinicaltrials.gov, the US Food and Drug Administration (FDA), and deal announcements. Thereafter, company valuations were combined with previously published clinical development periods alongside orphan-, ind

SUBMITTER: Michaeli DT 

PROVIDER: S-EPMC8854317 | biostudies-literature | 2022 Mar

REPOSITORIES: biostudies-literature