| This dissertation analyzes the impact of different organizational forms and intangibles on the performance of biotech firms. The first chapter analyzes the role of equity links in biotechnology alliances. A simple model of collaborative innovation is used to structure an empirical analysis of minority equity links in biotechnology alliances between clients and R&D firms. In the model, an equity link is an investment in information acquisition: it improves the ability of the client to learn about the R&D firms ability and the alliance projects quality. The model generates several testable hypotheses about how the R&D firms project characteristics and previous alliances affect the use of equity links in new alliances. A large data set of biotechnology alliances is used and empirical support is found.; The second chapter studies some of the intangible assets that affect the value of young biopharmaceutical firms. I explore intangibles such as R&D Investments, citations, clinical trials, alliances and acquisitions. The research analyzes 140 IPO US biopharmaceutical firms founded between 1990 and 2003. Using a nonlinear least-square regression model, I find that R&D stock, citations stock, clinical trials and alliances affect the value of young biopharmaceutical firms positively. Also, I have detected that acquisitions affect the firms' value negatively. Finally, the results suggest that the ratio that most impacts the value of young biopharmaceutical firm is the yield of R&D to Assets.; The third chapter examines the effects of strategies, intangibles, and FDA news on the stocks of young biopharmaceutical firms. An event study methodology is used to explore those effects. This study investigates 20,839 announcements from 1990 to 2005. Announcements on drug development, alliances, publications, presentations and FDA approval have a positive effect on the short term performance of young biopharmaceutical firms. Announcements on goals not met, FDA drug approval denied, and changes in structural organizations have a negative effect on the short term performance of young biopharmaceutical firms. |
