Navigating the Business Side of Biomedicine and Biotechnology

Navigating the Business Side of Biomedicine and Biotechnology PDF 

CONTENTS

Exploring the Nature of Healthcare Finance xiii

1. Introduction to Healthcare Finance 1

Defnitions in Biomedicine 1

Biotech Breakthroughs in the Healthcare Sector 5

Simplifying Financial Terminologies 6

Te Drug Development Process 9

Financial Considerations 10

2. Present Value, Drug Pricing Models and Inflation 12

Fundamental Challenges of Finance 12

What is an Asset? 13

Te Present Value Operator 14

Te Time Value of Money 15

Perpetuities 17

Annuities 19

Tree Pricing Formulas 20

Infation 21

CPI and BRDPI

Drug Pricing Models 23

3. Capital Budgeting 27

Maximizing Shareholder Wealth 27

NPV Rule and Biotech 28

Accounting and Cash Flows 29

Cash Flows vs. Accounting Earnings 31

Practical Considerations 32

Alternatives to NPV 37

Internal Rate of Return 37

Funding Case Study: Genentech & Herceptin 39

4. Stocks and Bonds 45

Overview of Stock and Bond Markets 45

Te Pricing of Stocks 46

Bonds 49

Discount Bonds 49

Coupon Bonds 54

Corporate Bonds 55

Financing Biotech through Bonds 57

5. The CAPM & Diversification 59

Volatility, Risk, and Uncertainty 59

Te Capital Asset Pricing Model (CAPM) 67

Portfolio Teory 72

Portfolio Teory in a Biomedical Context 85

6. Options 98

Option Pricing Teory 100

Corporate Liabilities: 105

Binomial Option-Pricing Model of Cox, Ross, and Rubinstein (1979): 107

Real Options and Biomedical Examples 112

Monte Carlo Simulations 119

7. Venture Capital & New Business Models 127

Defning Venture Capital 127

Staged Commitment and Dilution 130

Challenges for the Entrepreneur 132

Raising Capital .....ETC

 

 

Publisher ‏ : ‎ Sciendo
Publication date ‏ : ‎ March 11, 2025
Language ‏ : ‎ English
FORMAT:ORIGINAL PDF
ISBN-10 ‏ : ‎ 8367405765
ISBN-13 ‏ : ‎ 978-8367405768