Entrepreneurship in Biotechnology: Managing for Growth from Start-Up to Initial Public Offering (Contributions to Management Science)

Research and development of novel medicines for human therapy commonly takes over a decade before significant revenues from sales are forthcoming. How can biotechnology companies be founded and grow successfully in an industry with such extended innovation processes? The book investigates this problem and distinguishes three growth phases: From incorporation and start-up through collaborative R&D with large pharmaceutical firms to value creation from R&D pipelines to Public Offerings and product marketing. In this book a dynamic simulation model for testing different decision-making strategies is developed. For each phase the author identifies decision rules that provide for successful corporate growth. Research and development of novel medicines for human therapy commonly takes over a decade before significant revenues from sales are forthcoming. How can biotechnology companies be founded and grow successfully in an industry with such extended innovation processes? The book investigates this problem and distinguishes three growth phases: From incorporation and start-up through collaborative R & D with large pharmaceutical firms to value creation from R & D pipelines to Public Offerings and product marketing. In this book a dynamic simulation model for testing different decision-making strategies is developed. For each phase the author identifies decision rules that provide for successful corporate growth Front Matter....Pages I-XV Independent Biopharmaceutical Companies and their Specialization in Drug Discovery Technologies....Pages 1-32 Model Structure for High-Technology Firms and Its Dynamic Behavior in Start-Up Phases....Pages 33-125 Model Structure and Dynamic Behavior for High-Technology Firms in Transition to Growth Phases....Pages 127-171 Economic Value Creation in Transition Phases: Access to Equity Capital....Pages 173-236 Strategies for Growth Phases to Sustain Independence....Pages 237-238 Back Matter....Pages 239-323