With the emergence of biotechnology, the time for drug discovery becomes shorter. In order to obtain the technology they are short of, the pharmaceutical companies choose to forge an alliance with biotech companies. The benefit that the biotech companies get from the alliances is the R&D funds. Therefore the strategic alliaces are formed in the industry very frequently.
This thesis uses value activities and equity structures to divide strategic alliance into several types.Through case studies, the thesis sees if there is any difference in the alliances forged by the biotechpharmaceutical firms during different periods and if the financial structure of those firms changes.
Millennium Pharmaceuticals and Chiron are two biotech companies being discussed. The pharmaceutical companies chosen are Merck and Eli Lilly. Through the case studies of those above-mentioned firms, the conclusions are as following:
1. The methods for biotech and pharmaceutical firms to cooperate can be divided into two types. One is the pharmaceutical firms offer the greater part of the funds needed during the agreement period; the other is the biotech firms pay the pharmaceutical firms the upfront fees and the milestone fees.
2. Companies gain the most profits from the manufacturing and marketing part of the value chain. Many biotech firms move downstream into this area after gaining adequate sizes.
3. In order to improve the profit abilities, the biotech companies using alliances to get the experience of manufacturing and marketing.
4. The R&D / operating revenues ratio of biotech companies is higher than the one of pharmaceutical companies. So the biotech firms have lower profit margins and ROA. However, the investors anticipate that biotech companies have better profit ability in the future.
5. The revenue growth rate of biotech companies is higher.
6. The pharmaceutical companies are better-organized and have strategies to manage alliances.
7. The pharmaceutical firms decide which stage to forge alliances according to the status of companies¡¦ pipeline.
8. The biotech and pharmaceutical firms have to focus their resources on specific areas to maintain the ability to gain profits
9. It seems that the biotech companies gains more potential benefits from alliances.
| Identifer | oai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0628105-112145 |
| Date | 28 June 2005 |
| Creators | Lu, Pei-Wen |
| Contributors | none, none, none |
| Publisher | NSYSU |
| Source Sets | NSYSU Electronic Thesis and Dissertation Archive |
| Language | Cholon |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | http://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0628105-112145 |
| Rights | not_available, Copyright information available at source archive |
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