Technology Valuation Solutions
Chapter One
"I'll Teach You
the Value of Money"
The purpose of this chapter is to present two building blocks that are essential
for calculating the value of a technology proposal-discounted
cash flow (DCF) and the cost of capital. Each of these tools is individually
powerful and can be used to analyze real-world problems.
DISCOUNTED CASH FLOW
Case 1: The Licensing Manager's Dilemma: Cash Now
or More Cash Later?
MabPharma is a fictitious research-based company specializing in the discovery
of monoclonal antibodies that inhibit metastatic cancer. One of their
candidate drugs is in late-stage clinical trials and the results appear at least
as promising as several other monoclonal products that have already received
Food and Drug Administration (FDA) approval. A New Drug Application
(NDA) has been filed, and all indications are that approval is
imminent. However, MabPharma does not wish to invest in the assets required
to manufacture and market this product, and would prefer instead
to invest further resources in exploiting the company's strong technology ... read full excerpt from Technology Valuation Solutions ebook
