New drug development in biopharmaceutical companies : the role of private and external funding
Vernalls, Saara (2012)
Vernalls, Saara
Turun ammattikorkeakoulu
2012
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-201204164474
https://urn.fi/URN:NBN:fi:amk-201204164474
Tiivistelmä
Biotech industry is characterized by unique elements as the companies operate in high risk environment attempting to accomplish scientific developments trough lengthy and expensive R&D cycles while facing insufficient funding. Most companies develop new drugs while not generating any revenue, however, the need for funding is critical at each stage of the new drug development process. The overall purpose of this study is to describe the challenges in new drug development and identify main sources of private and external funding for biopharmaceutical companies. The study was conducted as an exploratory research and data was collected by interviewing a Finnish biopharmaceutical company.
To achieve the aim of the study, three streams of literature were reviewed: biotechnology industry, new drug development and private and external funding sources in biopharmaceutical context. Most empirical findings of the study supported existing literature. This study emphasises the importance of funding in new drug development and venture capital and alliances with Big Pharma were identified as the main sources of private and external funding for biopharmaceutical companies. Key findings were that early-stage drug development can attract venture capital and value can be created already at early stages of drug development making the company profitable. This thesis contributes to the already existing body of literature and offers a practical description of challenges in new drug development and private and external funding sources.
To achieve the aim of the study, three streams of literature were reviewed: biotechnology industry, new drug development and private and external funding sources in biopharmaceutical context. Most empirical findings of the study supported existing literature. This study emphasises the importance of funding in new drug development and venture capital and alliances with Big Pharma were identified as the main sources of private and external funding for biopharmaceutical companies. Key findings were that early-stage drug development can attract venture capital and value can be created already at early stages of drug development making the company profitable. This thesis contributes to the already existing body of literature and offers a practical description of challenges in new drug development and private and external funding sources.