Cases in Finance

1. UGC estimated that it would need C$150 million to carry out its strategic plans over the coming two years. Will its internal resources provide reliable funding for this program? How much external funding might it need? The company needs to spend C$150 million, which covers the installation of high-throughput elevators (7 or 8 more at $9 million each) and the upgrades of 15 elevators at $3 million each. The rest of the money is needed for the funding of the expansion of Crop Protection Services and Livestock services division.

Nucleon has a strong patent for a niche area of cell regulating proteins and its therapeutic properties. It requires venture capital to bring drugs to clinics fast and before the competition gets there first. The company needs the venture capital to finance the pilot manufacturing facility for Phases I & II trials but also to establish process and manufacturing processes for scaling up production from a laboratory environment to a commercial plant. The drug would be clinically tested for treatment of burns and kidney failure, but CRP-1 has the potential for many other therapeutic uses .

In the open market share repurchase, the firm may or may not declare the repurchase. Depending on the market condition and the firm’s position in the industry, the firm can decide when and how many

The repurchase program increases the shareholder’s value. This is because of a rise in the price of the shares of the original shareholders.

2. New bank credit facility, 600 million cash on hand to take advantage of opportunities that may arise

As shown in the ratios chart, working capital has increased by $13M. Maturities of short-term investments and cash flow from operations are projected to be sufficient to sustain the company’s overall financing needs, including capital expenditures. The following corporate strategic plan identifies a project that needs financial backing.

Since firms incur the re-purchase option by offering $20 cash for each stock bought back, the number of outstanding shares will be reduced. The Earnings per share will increase leading to an increased stock price.

The fund is available annually $100,000,000 to fund an estimated 285 recipients. Applicants may apply for a maximum ceiling amount of up to $350,000 per year. The eligible applicants may request up to $150,000 in Year 1 only for equipment or minor renovations. The funding cycle of the project period is two years. The funding after one year depends on many factors that include the availability of appropriated funds in subsequent fiscal years, satisfactory award recipient

Nucleon is a small biotechnology start-up company focused on developing biotechnological pharmaceutical products based on a class of proteins known as cell regulating factors. The company has been in the market for five years, and currently, they are in the process of human trials for their first potential product, “cell regulating protein-1” (CRP-1). Overcoming these phases, Nucleon has to decide among several alternatives on producing CRP-1. Knowing that the process involved a tremendous amount of time and money, Nucleon has to choose the right decision for their long-term survival in the intensively competitive and high-stakes drug industry.

54 billion dollars is the amount external funding that Scientific Glass company will have to be raised in 2010 for financing operations. But the challenge for Scientific Glass company is that if the company uses 54 billion dollars, it will limit the company to use current capital to invest other areas such as development, research, and expansion into new international markets.

EXECUTIVE SUMMARYSilicon Valley Medical Technologies (SIVMED) was founded as a research and development firm. In the beginning, SIVMED performed its own basic research, obtained patents on promising technologies, and then either sold or licensed the technologies to other firms which marketed the products. The firm has since then grown and is now contracted to perform research and testing for larger genetic engineering firms, biotechnology firms, the US government, and is now widely recognized as the leader in an emerging growth industry. SIVMED's founders were relatively wealthy individuals when they started company, and they committed a great deal of their own funds to the venture. Their personal funds, however, were soon exhausted by the

The strategic implications for Vertex attempting to fund and develop four drugs are as following:

First, Biodel had under development a synthetic serum that would be used to satisfy growth requirements in cells. This would be an innovative product that could be a substitute for natural fetal calf serum and horse serum. However, a major problem with the fetal serum is the unstable fluctuation in cost. The cost is determined by the supply of the serum and the supply is determined by the number of calves that are slaughtered. The synthetic serum could offer a steady rate. The market is projected at $50 to $80 million. Biodel would have a competitive advantage over the competition and could attain 20% of the market share if they pursue this project. A big problem with this

Use the excess cash to repurchase common stock will reduce common shares from 155.5(30% debt) m to 118.9m (70% debt), as the result that will increase the earning per share as well as the stock price.

Genentech is a ripe exemplar of the highly adaptable and productive initial pool of 1st generation biotech companies. Genentech not only developed the novel recombinant DNA technology but also maneuvered through the established world of drug development with expertise, leveraging its new technology into products commanding high value while founding strategic corporate partnerships. The evolution of this market saw the huge successes of IPO’s in the late 1980’s to mid 90’s, and