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  • October 2000 (Revised March 2003)
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Merck & Company: Evaluating a Drug Licensing Opportunity

By: Richard S. Ruback and David B Krieger
  • Format:Print
  • | Pages:6
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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.)
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About The Author

Richard S. Ruback

Finance
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  • Lupoli Companies: Riverwalk - Making an Impact By: Richard S. Ruback, Marco Di Maggio, Dave Habeeb and Ruth Page
  • Managing Pain in the Midst of an Opioid Epidemic By: Joshua D. Coval, Richard S. Ruback and Christopher Diak
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