Abstract

http://ssrn.com/abstract=1012639
 
 

References (34)



 


 



Valuation of Intangible Assets: Estimating Late-Stage Development Cost of Pharmaceutical R&D


Giampiero Favato


Kingston University

Roger Mills


Henley Management College - Henley Centre for Value Improvement (HCVI)

August 2007


Abstract:     
Policy makers need reliable estimates of direct costs of pharmaceutical R&D, in order to contain health-care costs and at the same time maintain a supportive environment for investment in research.

This paper evaluates the application of parametric estimating methods to the late stage clinical development of new drugs, in order to estimate the direct costs of clinical trials from the linear relationship of two non-cost variables: the standardised minimal significant clinical outcome and the sample-size required to reach statistical significance. The number of patients enrolled in clinical trials represents the closest proxy to the total cost of clinical research, as the protocol requirements of randomised studies minimise the cost differences among therapeutic areas.

The first example of randomised experimental research in Life Science cost accounting; this study can be duplicated by virtually anyone who can access a scientific library, without the significant constraint of obtaining proprietary information from pharmaceutical companies.

Number of Pages in PDF File: 52

Keywords: valuation, intangible, assets, pharmaceutical, development, cost

JEL Classification: L65, O32

working papers series





Download This Paper

Date posted: September 12, 2007  

Suggested Citation

Favato, Giampiero and Mills, Roger, Valuation of Intangible Assets: Estimating Late-Stage Development Cost of Pharmaceutical R&D (August 2007). Available at SSRN: http://ssrn.com/abstract=1012639 or http://dx.doi.org/10.2139/ssrn.1012639

Contact Information

Giampiero Favato (Contact Author)
Kingston University ( email )
Kingston Hill
Kingston upon Thames
Surrey KT2 7LB
United Kingdom
Roger Mills
Henley Management College - Henley Centre for Value Improvement (HCVI) ( email )
Greenlands
Henley-on-Thames
Oxfordshire RG9 3AU, England
United Kingdom
HOME PAGE: www.henleymc.ac.uk/hcvi
Feedback to SSRN


Paper statistics
Abstract Views: 1,703
Downloads: 458
Download Rank: 34,639
References:  34

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo5 in 0.328 seconds