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Case 3 - Pharmacyclics Group 6

Case 3 - Pharmacyclics Group 6


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Published by: davidsison on Mar 11, 2011
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DE LA SALLE UNIVERSITY Graduate School of Business

Pharmacyclics: Financing Research & Development
A Case Analysis

In Partial Fulfillment Of the Course Requirement In

Technology Strategy and Management
Submitted to: Prof. Reynaldo C. Lugtu Jr.

Submitted by: Chua, John Harold Lopena, Cleo C. Sison, David P. Guerrero, Rachel January 28, 2011

Statement of the Problem:
What would be the basis for CEO Dr. Richard Miller to decide whether to sell the $60 million equity for financing the ongoing drug innovation’s research and development?

to sell the 60 million on staggered basis for the next 3?4? years Framework – decision tree .options instead of product 1 (xcytrin) .david ACA #2 – to wait until Xcytrin is FDA approved Framework – Use REAL OPTIONS MODEL. Objectives: • • • To identify appropriate decision tools to use to control uncertainties of new innovations To compare advantages and disadvantages of each decision making tool To recommend and review possible options in relation to choosing a strategy to finance its research & development projects Areas of Consideration / Major Assumptions: • • CEO Dr. Using all products as well ACA #3.rachel Recommendation Action Plan 2|Page . Richard Miller is taken as the point of view . Theoretical Framework: Alternative Courses of Action ACA#1 – to sell the 60 million now Framework – real options .De La Salle University Professional School Inc.

De La Salle University Professional School Inc. 3|Page .

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