Essay on Case Study Summary

Ecton is going to position the company to be acquired but the board of directors and clinical advisors has some concerns about the ramifications of that plan. This paper evaluates Cannon’s Phase III Plan on March 1998. Cannon proposed a path for the next year containing five major points (Edward, 1999, 8 and 9). The bottom line of this proposal is positioning Ecton to be acquired by the end of the 1998. One of the crucial concerns of this acquisition is the possible effects on “Ecton’s product development process”. Another concern Cannon holds is the ability of Ecton to penetrate a very harsh market fills with big, established, and advanced manufacturers. Also, Cannon is not sure on how to approach specific market

As an investment manager from Sierra Capital Partners, Rodney Chu is interested in purchasing a 60% equity interest of Arcadian Microarray Technologies, Inc., a biotechnology firm. The bid is currently at $40 million. The Arcadian’s managers have optimistic projections for their firms’ performance over the next 11 years.

The ALPES S.A. case deals with Charles River Laboratories (CRL) and their consideration of a joint venture proposal with an animal vaccine company in Mexico. The senior V.P. is preparing to present the proposal of a $2 million investment for the firm. The CEO, Jim Foster, is concerned with the associated risks that CRL would be undertaking if they accept this venture.  Key issues of concern are; the partnership with a relatively small, family run business; having operations in Mexico, which could pose difficulties; maintaining CRL’s focus on U.S. expansion; and the proposed partner’s lack of funds to invest, which will leave CRL  to  bear the entire cost of the venture.

Other Solutions: Another option is to look at ASC 470-10-25 for guidance on an accounting approach. When using this method the funding is either considered debt or deferred income. This standard applies when, “An entity receives cash from an investor and agrees to pay to the investor for a defined period a specified percentage or amount of the revenue.” To distinguish is the funding is to be considered debt or deferred income ASC 470-10-25-2 provides six criteria in which if any are met causes the funding to be classified as debt. One of the criteria is that Pharmagen will have, “significant continuing involvement in the generation of the cash flows due the investor” which is

5. The $1.4 million funding are not enough to purchasing 40% of equity in SecureNet INC. The result of around 40% is coming from two parts, one is the $1.4 million funding, and another part is from $0.5 million repayment of bridge loan which convert into investment to purchasing preferred stocks.

Currently AbbVie carries a small portfolio of drugs consisting of Humira, an arthritis medication, and AndroGel, a testosterone medication. They have multiple other projects in their pipeline and are currently focusing their research and development costs on drugs in the following categories, immunology, virology and oncology. AbbVie had revenues of $10,845,000,000 in 2014 but only managed a net earnings of $963,000,000. This is a -56.9% decrease from the year prior and marks a second consecutive year of reduced net earnings. This is not a particularly accurate depiction of their business practices as AbbVie incurred a $2.2 billion breakup fee for abandoning a merger with Shire PLC. Another notable transaction that Abbvie made in 2015, was

Problem Statement: Chem-Med Company is positioned strongly in its industry to achieve high growth and earn large profits in the future, but it is in need of financing. To secure this financing, Chem-Med must address concerns of potential financers and investors regarding liquidity, efficiency, cash flow, and the need for funding despite apparent growth. In addition, Chem-Med’s primary competitor, Pharmacia, is out-competing the company and stealing valuable market share and sales volume with lower prices. Analysis: To understand Chem-Med’s problems, we must first look at the company’s liquidity and efficiency through the calculation of various ratios. Common measures of liquidity, activity, and profitability for ChemMed and its competitor

Editas medicine does not generate revenue from product sales. They have funded their operations primarily through private placements of their preferred stock and collaboration with Juno Therapeutics. Throughout September 30, 2015, they raised an aggregate of $190.3 million to fund their operations, consisting of $163.3 million of gross proceeds from sales of their preferred stock, a $25.0 million up-front payment under their collaboration with Juno Therapeutics, and $2.0 million of gross proceeds from an equipment loan financing.

Arrowhead Pharma is a company with several potential catalysts over the next two years that will determine if they make it as a company. After the first quarter they only have $77 million in cash, and they burned an average around $22 million a quarter in 2015. They are currently presenting positive Phase I data at The International Liver Congress, which sent their shares up 12% premarket on Wednesday. Although they will not give any exact timeline on further data releases for ARC-520, they have five ongoing Phase II studies, and “we have a

demand for Retrovir. Since they were developing a drug for a fairly new disease, with

Successful IPO offerings by Quintiles and PPD and their subsequent growth to top 5 CROs in the industry (refer appendix 1), Kendle can follow the same strategy and obtain required capital through IPO. Threats: Kendle is losing contracts to larger CRO’s with international presence, industry consolidation, presence of numerous fragmented CRO’s worldwide, growth of many start-ups through financial roll-up strategy, many CRO’s are on an acquisition spree and Kendle is losing bids to companies such as Collaborative due to shortage of capital, ClinTrials negative performance is affecting other CRO stocks. Competitors: The fragmented CRO industry has hundreds of players ranging from small, limited-service providers to full-service CRO’s, and global drug development corporations which possess significantly greater capital, and other resources than Kendle. CROs compete on the basis of experience, medical and scientific expertise in particular therapeutic areas, quality of work, the capability to handle extensive trials worldwide, medical database management capabilities, and relevant technology to advance research. International presence with strategically located facilities, proximity to clients, and financial capability and cost efficiency are also necessary. In order to build these capabilities for competing effectively, the CRO industry is consolidating as

Investor interest in Augustine Medical Inc and the medical technology it provided produced an initial capital of $500,000. These funds include R&D, staff support, facilities and marketing.

•Allergan’s (AGN) September 20th purchase of NASH treatment pharmaceutical companies Tobira ($1.7 billion) and Akarna ($50 million) left many investors wondering about the disease’s market potential and major players.

Accel Partners, a venture capital firm, led the investment round with the total funds raised hitting $12,7 million. The valuation of the company hits $87,5 million.

The money source of venture capital is supplied by individual and/or institutional investors. Their mission is to finance startups, rapidly growing companies or the ones that are in debt, hoping one day they can have a sizable return upon exit. Nowadays venture capital has played a more and more important role in the investment market because this is a good way for new companies to receive funding capital.