Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
984948 | Research Policy | 2006 | 12 Pages |
Real options analysis was often recommended as an emerging valuation technique for high-risk investment projects. Former inter-sectoral surveys have drawn an ambivalent picture of real options usage in general. In addition, there is a lack of sector-specific investigations. In the following article the results of an in-depth analysis of collected empirical data regarding the application of this new tool in the pharmaceutical sector is presented by capturing the internal view from the pharmaceutical companies themselves and the external view from the health care departments of financial service firms. R&D stage specific modi of application, reasons for reluctance in the employment of real options and their assumed future prospects are elucidated.