to decide whether the company should license Davanrik that is new drug.* Lab Pharmaceuticals –Lab Pharmaceuticals •To develop compounds for treatment of neurological disorders. •Although company is 15 years old‚ none of its drug was successfully completed by FDA approval process. •Its stock price was declined by over 30% and needs cash. •Therefore‚ it is looking for a large pharmaceutical company like Merck to license the drug‚ Davanrik.* – Davanrik •Originally developed to treat depression and
Premium Clinical trial Decision tree Expected value
Section A- P1 Verbal Communication Verbal communication is being able to speak to someone using your mouth. This could be on the phone‚ Skype or normal face-to-face conversations. Written Communication Written communication is being able to speak to someone via text message‚ fax or a social networking like Twitter and Facebook. On-screen Communication On-screen based communication is communication that is displayed on a screen. Screens cans include TV‚ computers‚ monitors‚ mobile phones‚
Premium Telephone Writing Advertising
Alcohol Consumption And The College Student – The Causes And Effects Alcohol Consumption and the College Student The Causes and Effects December 24‚ 2011 Table of Contents List of Illustrations 3 EXECUTIVE SUMMARY 4 1.0... Premium The Causes And Effects Of Students Having a Part-Time Job While They Study a part-time job could affect on students in many different ways. This essay will talk about the causes and effects of students having a part time job‚ and the two
Premium University Full-time Student
Greek & Roman Cultures HUMA215-1204A-20: Topics in Cultural Studies Jasmin I. Caddel American InterContinental University August 26‚ 2012 Greek & Roman Cultures | Greece | Rome | Geographical Terrain | Mediterranean‚ hilly country sides‚ near water‚ has many islands‚ Further south located than the Romans; The Greek did not have an empire and none of the cities were able to become dominant over the others | Mediterranean‚ just a few coastlines‚ mountain sides; Further north located
Free Ancient Rome Roman Empire Ancient Greece
manufacturing exclusive drugs. Its popular products have brought in significant amount of sales to the company; however‚ the patents of these drugs are expired in two years. To solve this problem Merck is considering whether to license a new drug named Davanrik developed by LAB. This new drug may have potential effect on the treatment of depression‚ obesity‚ or both. To help Merck making a decision‚ this report will first analyze the profitability model and financial condition of the company‚ and thenevaluate
Premium Cash flow Income statement Revenue
company‚ such as Merck‚ which has more resources and money. 2. Build a decision-tree that shows the cash flows and probabilities at all stages of the FDA approval process. Since the EMV of the decision tree is positive‚ Merck should license Davanrik. From consolidated income statement‚ we could calculate the retained earnings as a percentage of income before taxes. Retained earnings as a percentage of PBT = This should be maintained for this deal as well. Hence the most Merck could pay
Premium Expected value License Money
Evaluating a Drug Licensing Opportunity Introduction: Davanrik is a new drug developed by LAB Pharmaceuticals‚ which has the potential to treat depression and obesity. Davanrik was initially developed to treat depression by stimulating the receptor in the serotonin system that promotes anti-depression. However‚ it was discovered that Davanrik also blocks the receptor that causes hunger. LAB Pharmaceuticals obtained a patent for Davanrik with a max remaining life of 17 years. LAB Pharmaceuticals
Premium
Should Merck license the compound? Merck would be responsible for 1) the approval of Davanrik 2) the manufacture of Danavrik 3) marketing of Danavrik Merck would pay LAB for 1) initial fee 2) royalty on all sales 3) make additional pymts as Danavrik completed each stage of approval process (3 Phases) Additional facts: approval process should take 7 years patent will cover 17 years (7 of approval process nad 10 yr period of exclusivity beginning in yr 7) 1 Assumptions:
Premium Decision theory Probability theory Decision tree
This task is better suited for a larger company‚ such as Merck‚ which has more resources and money. 2. Build a decision tree that shows the cash flows and probabilities at all stages of the FDA approval process 3. Should Merck bid to license Davanrik? How much should Merck pay? Using the decision tree with the cash flows and the probability of each scenario‚ we calculated the expected net value of this drug license to be $13.98 million at year 2000 (Appendix 1). In addition‚ Merck’s patents
Premium Management Education Psychology
Table of Contents 1. Change Management 2 a. Strategic Changes 3 b. Technological Changes 3 c. Structural Changes 4 d. Behavioural Changes 4 2. Introduction to Tata Motors 5 a. Size and Industry 5 b. History and Timeline 5 3. The Survey 8 4. Questionnaire 9 a. Questions to be asked for survey 9 b. Sample Answers 11 c. Results Obtained 12 5. Analysis of the Results 13 6. Factors Responsible for Change and how the Organization responded 15 a. Phase one 16 b. Phase two 17 c. Phase
Premium Tata Motors Tata Nano