Valuing Pharmaceutical
Companies
Karen Beynon and Andrew
Porter WOODHEAD PUBLISHING LIMITED
The pharmaceutical sector
offers some of the most exciting financial and business opportunities today. This
essential and practical guide gives you all the tools you need to assess such
opportunities. The second edition of the respected Pharmaceutical Equities, it has been
thoroughly revised and updated to reflect the changes, especially in life sciences, since
the first edition.
The book is international in
outlook, and explains the rules of the game not just for wise investing, but also for
understanding how this uniquely complex and highly regulated business works.
The authors explain:
HOW to evaluate the technology and research and development, as well as the sales
potential of ensuing products WHAT key issues will affect and influence companies in the
next few years HOW to balance potential high returns on breakthrough products against
accompanying risks
The book begins with a look
at the global pharmaceutical industry, from its history to the structure of present day
companies. The second part explores how to analyse and value pharmaceutical and
biotechnology companies. The final part deals with trading itself and looks at share price
movement and the main equity markets throughout the world.
Both practical and
comprehensive, this handbook will be essential reading for investors, analysers and
corporate planners - and is the ONLY book which will show you how to actually value
pharmaceutical companies.
Contents
Part 1: THE GLOBAL
PHARMACEUTICAL INDUTRY
Chapter 1: Pharmaceuticals
and the treatment of disease
History Biotechnology Changing patterns of health Drug discovery Intellectual property
R&D The use of pharmaceuticals
Chapter
2: Structure and internationalisation of the industry
Pharmaceutical market structure The global marketplace International organisations
Mutual recognition agreements Trade associations
Chapter 3: Regional and national developments
The USA The European single market Japan Emerging markets
Chapter 4: Major changes in the pharmaceutical industry
Industry consolidation Life
sciences Genomics Generics Drug delivery Vaccines Outsourcing Distributors and wholesalers
DTC advertising E-commerce
Part 2: ANALYSIS AND
EVALUATION OF PHARMACEUTICAL COMPANIES
Chapter 5: Valuing major
quoted companies
Factors in assessing pharmaceutical equities Standard investment analysis criteria
Financial accounts - policies and analysis Company strategy Competition Financial policy
and non-operating income Takeover bid and merger valuation Comparative analysis
Chapter 6: Valuing new venture and biotechnology companies
The US and European markets Innovation in the pharmaceutical industry Stages of
development and funding requirements Venture capital New issues and initial public
offerings Evaluation of development companies Equity trading and liquidity Biotechnology
companies
Chapter 7: The assessment of
research and development
R&D organisation and strategy Early research Important stages of development Issues
in R&D assessment Interpretation of clinical trial results Project failure Comparative
analysis and efficiency of R&D spend Sources of information on R&D
Chapter 8: The assessment of
product sales performance
Changes in product sales expectations Issues in pharmaceutical product forecasting Size
of market Forecasting market growth Estimating market share Pricing and reimbursement
Product loyalty Launch phasing Company priorities Salesforce Blockbusters
Part 3: PHARMACEUTICAL EQUITY
TRADING
Chapter 9: Key issues
influencing pharmaceutical share price movement
General equity market price movements Pharmaceutical sector price movements Company
price movements Sources of price sensitive news Chart analysis
Chapter 10: Investment and trading strategy
Factors in portfolio selection Timing and risk International fund management Use of
options and derivatives
Chapter 11: Dealing in major equity markets
USA Europe JapaN
129 pages
