Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
Publications
Publications
  • October 2000 (Revised March 2003)
  • Case
  • HBS Case Collection

Merck & Company: Evaluating a Drug Licensing Opportunity

By: Richard S. Ruback and David B Krieger
  • Format:Print
  • | Pages:6
ShareBar

Abstract

This explores the valuation of an opportunity to license a compound before it enters clinical trials. Describes Merck's decision tree evaluation process is presented. Information required to evaluate a specific licensing opportunity is provided, including the costs of the three phases of the review process, the revenues if approved, and the probability of various outcomes. It includes an introduction to decision tree analysis and valuation.

Keywords

Decision Making; Cost vs Benefits; Opportunities; Valuation; Outcome or Result; Pharmaceutical Industry

Citation

Ruback, Richard S., and David B Krieger. "Merck & Company: Evaluating a Drug Licensing Opportunity." Harvard Business School Case 201-023, October 2000. (Revised March 2003.)
  • Educators
  • Purchase

About The Author

Richard S. Ruback

Finance
→More Publications

More from the Authors

    • May 2025
    • Faculty Research

    gWorks

    By: Richard S. Ruback and Royce G. Yudkoff
    • May 2025
    • Faculty Research

    Heritage Holding

    By: Richard S. Ruback and Royce Yudkoff
    • March 2025
    • Faculty Research

    Rose Electronics Distributing Company (B)

    By: Richard S. Ruback and Royce Yudkoff
More from the Authors
  • gWorks By: Richard S. Ruback and Royce G. Yudkoff
  • Heritage Holding By: Richard S. Ruback and Royce Yudkoff
  • Rose Electronics Distributing Company (B) By: Richard S. Ruback and Royce Yudkoff
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Accessibility
  • Digital Accessibility
Copyright © President & Fellows of Harvard College.