Relationship between R&D Efforts and Firm Value in the Pharmaceutical Industry

• 영문명: Relationship between R&D Efforts and Firm Value in the Pharmaceutical Industry
• 발행기관: 한국무역연구원
• 저자명: Seng Ho Jeon Jong Oh Kim Joung Hwa Choi
• 간행물 정보: 『무역연구』제10권 제5호, 67~93쪽, 전체 26쪽
• 주제분류: 경제경영 > 무역학
• 파일형태: PDF
• 발행일자: 2014.10.31

영문 초록

Besides spending on research and development (R&D), performance in terms of new drug application (NDA) and patent approval has been a key surrogate marker of R&D efforts of pharmaceutical firms. The results show that Korean firms are more responsive to patent approval, whereas non-Korean firms are more responsive to NDA approval. Although many recently approved patents of Korean firms are related to innovative discovery of novel drug candidates, the commercial value of NDA approvals accomplished by non-Korean firms is remarkably high. The annual quantitative accomplishment of NDA approval is small, considering the long development process. However, its commercial value is big and the drug receives worldwide acceptance. This is the reason why investors react positively to NDA approval news of non-Korean firms. The findings in this study imply that it would be advantageous for both Korean and non-Korean firms to persist with their R&D efforts, in accordance with their respective strategy. This would help in maintaining and upgrading their firm value as well as in developing new drivers of potential growth for corporate sustainability management, besides managing the financial capacity through firm-specific execution.

목차

Abstract

Ⅰ. Introduction

Ⅱ. Literature review and Hypothesis development

Ⅲ. Data and Methodology

Ⅳ. Empirical Results

Ⅴ. Discussion and Conclusion

References

키워드

R&D NDA patent firm value pharmaceutical firms