The valuation of biotech companies The impact of R&D intensity on the market value of the biotech firms / Oleg BEREZHNOY / 2022

Titre : The valuation of biotech companies The impact of R&D intensity on the market value of the biotech firms Type de document : Mémoire Auteurs : Oleg BEREZHNOY, Auteur Année de publication : 2022 Importance : 22 p. Note générale : Pour accéder aux fichiers PDF, merci de vous identifier sur le catalogue avec cotre compte Office 365 via le bouton CONNEXION en haut de la page. Langues : Anglais (eng) Mots-clés : Management EVALUATION ; EVALUATION D'UNE ENTREPRISE ; INNOVATION ; RECHERCHE Delphes RECHERCHE-DEVELOPPEMENT Résumé : In this study, we made an examination of different factors influencing the value of biotech companies. This analysis was conducted using the dependent variable EV/Revenue for representation of the valuation of biotech companies and several independent explanatory variables. The results of the analysis show that the companies with high R&D intensity tend to have a higher value. In other words, the market takes into consideration the R&D investments made by the biotech companies and anticipates a better performance from such kinds of companies. We can also make a conclusion that the market treats CAPEX expenditures in line with R&D investments and, as a result, anticipates a better revenue performance from biotech companies with higher CAPEX expenditures. It looks like the market doesn’t respond just to the fact of drug approval, as we didn’t find any links between the biotech companies’ value and the product approval intensity. Finally, considering the significant level of biotech companies going on IPO with minimum revenues or without revenues at all, we didn’t find any proof that the market gives more value to R&D investments made by less mature biotech companies. Despite a significant number of observations (1322), we should underline the fact that we base our analysis only on a one-year period due to high volatility in the healthcare industry provoked by the healthcare crises in recent years Programme : MSc Corporate Finance Permalink : https://cataloguelibrary.neoma-bs.fr/index.php?lvl=notice_display&id=568522