Publications
Publications
  • April 1998
  • Case
  • HBS Case Collection

Cephalon, Inc.

By: Peter Tufano
  • Format:Print
  • | Language:Japanese
  • | Pages:18
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Abstract

In early 1997, Cephalon, awaited an FDA panel's decision on whether its drug, Myotrophin, would be approved. If the drug was approved, the firm might need substantial additional funds to commercialize as well as to buy back rights to it (which had been sold earlier to finance its development). The firm's CFO is considering a variety of financing strategies, including buying call options on the firm's own stock and paying for those options by issuing shares at the current time.

Keywords

Risk Management; Financing and Loans; Health Care and Treatment; Pharmaceutical Industry; United States

Citation

Tufano, Peter, Geoffrey Verter, and Markus Mullarkey. "Cephalon, Inc." Harvard Business School Case 298-116, April 1998.

About The Author

Peter Tufano

General Management
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