Real Options Valuation of Pharmaceutical Patents: A Case Study

摘要: This study sets up a real options approach for evaluating patents as to develop and commercialize new medicines. We provide case in patent evaluation, i.e. ROV-based DCF computing the value of an oncological drug patent. The option relies on well-established compound method extensively used by academics corporate finance practitioners deal with valuation early-stage R&D projects. show that model can be practically underlying development project thus evaluate using much possible data provided one largest oncology-focused companies Europe. apply continuous-time lattice order find this Since it shows how has straightforward practical usefulness. topic is mainly suggested critical unresolved question concerning economic patents.