Should Merck license the compound? Merck would be responsible for 1) the approval of Davanrik 2) the manufacture of Danavrik 3) marketing of Danavrik Merck would pay LAB for 1) initial fee 2) royalty on all sales 3) make additional pymts as Danavrik completed each stage of approval process (3 Phases) Additional facts: approval process should take 7 years patent will cover 17 years (7 of approval process nad 10 yr period of exclusivity beginning in yr 7) 1 Assumptions:
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Should Merck license the compound? Merck would be responsible for 1) the approval of Davanrik 2) the manufacture of Danavrik 3) marketing of Danavrik Merck would pay LAB for 1) initial fee 2) royalty on all sales 3) make additional pymts as Danavrik completed each stage of approval process (3 Phases) Additional facts: approval process should take 7 years patent will cover 17 years (7 of approval process nad 10 yr period of exclusivity beginning in yr 7) 1 Assumptions: All Cash flows
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Evaluation of Financial Information Syllabus (Subject to minor changes) Spring 2012 Prof. Anna Scherbina UC Davis Graduate School of Management Office: 3212 Gallagher Hall Course Focus Tel: 530.754.8076 e-mail: ascherbina@ucdavis.edu We will learn how to use financial information to value firms‚ projects‚ and securities in a wide variety of industries‚ including real estate. The course will be based entirely on the Harvard Business School case studies and will focus on learning techniques
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Merck is a global research-driven pharmaceutical company dedicated to putting patients first. Merck’s highest priority areas are Alzheimer’s disease‚ atherosclerosis‚ cardiovascular disease‚ diabetes‚ novel vaccines‚ obesity‚ oncology‚ pain and sleep disorders. In addition‚ and importantly for licensing‚ the following other areas remain of high interest for focused investment in new compounds and mechanisms: antibiotics‚ antifungals‚ antivirals (HCV and HIV)‚ asthma‚ COPD‚ neurodegeneration‚ ophthalmology
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Decision Trees Using TreePlan 16 16.1 TREEPLAN OVERVIEW TreePlan is a decision tree add-in for Microsoft Excel 2000–2010 (Windows) and Microsoft Excel 2004 & 2011 (Macintosh). TreePlan helps you build a decision tree diagram in an Excel worksheet using dialog boxes. Decision trees are useful for analyzing sequential decision problems under uncertainty. Your decision tree model may include various controllable alternatives (e.g.‚ whether to introduce a new product‚ whether to bid on a new project)
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we are a bit unclear on the way in which the decision trees can be applied to this case. Are we correct in assuming that they can be used to generate an expected value‚ similar to the simulation only simplified? A: Decision trees can be very useful in understanding what actions Mr. Bernard should take under what scenarios. See an example at the end of this document. Students aren’t expected to do a full‐blown analysis of decision trees. They should however 1. create
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shows the decision tree. ii) As the decision tree shows‚ the preferred alternative is to accept the order and purchase the injection molder‚ with an expected pro¯ t of $154.4 thousand. Exercise 1.2. Arthrodax Company (con’t) i) Figure 4.2 shows the decision tree. ii) As the decision tree shows‚ the preferred alternative is to accept the order and purchase the cases‚ with an expected pro¯ t of $99.9 thousand. Exercise 1.3. Arthrodax Company (con’t) i) Figure 4.3 shows the decision tree. Note that
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Management Science – Workshop 2: Case Study Recreational Properties 1. 1. Framing the Decision 2. Recreational Properties obtained a package of options to acquire three parcels that would allow them to develop a ski resort. The company paid €500‚000 for the package of options in June 2001. The options gave the company the right‚ but not the obligation‚ to acquire the three parcels at a (strike) price of €10 million in June 2002. 3. Furthermore‚ in order to develop the three parcels
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"The Process of Analysis ̶ Diagrams and Trees" Decision analysis offers organization and direction for thinking methodically about challenging alternatives. Complexity‚ uncertainty‚ multiple intentions and numerous perspectives can lead to different best guesses. The policy analyst has several tools she or he can use to make hard decisions easier to make. Two of these tools are decision trees and influence diagrams. As the author notes‚ these problem-structuring methods are valuable in producing
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Questions for the Merck Case Create a decision tree for Merck. The 2 leftmost branches would identify the alternatives related to licensing Davarink (specifically license versus not to license). Next‚ if Merck decides to pursue license‚ they go into phase I which results in a success‚ or failure. Phase I success is followed by phase II where Merck has the opportunity to develop the drug to treat depression alone‚ weight loss alone‚ or both‚ or contemplate phase II failure. Finally phase
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