The impact of in research, development and innovation on value generation of pharmaceutical companies Other Languages

ID:
66308
Authors:
Bruno Barbosa Bronzeri
Fábio Gallo Garcia
Elmo Tambosi Filho
Journal:
Revista Organizações em Contexto
Abstract:
The present work analyzes the pharmaceutical industry worldwide, considering the continuous growth of this segment and the volume of resources invested in Research, Development & Innovation (RD&I), in order to understand how this investment impacts the company’s value, considering products innovative products and pipeline product designs. A multivariate quantitative analysis was developed using a logistic regression model with panel data from nine pharmaceutical companies worldwide between 2009 and 2018. It was verified that the most innovative and most efficient companies in RD&I add more value. It was also possible to verify the importance of reducing agency conflict, considering that the possible delay in the launch of new products by executives may be negatively impacting the company’s value creation for the companies in the pharmaceutical sector studied here.
Keywords:
Pharmaceutical Industries, Research, Development and Innovation, Value generation
ABNT Citation:
BRONZERI, B. B.; GARCIA, F. G.; TAMBOSI FILHO, E. The impact of in research, development and innovation on value generation of pharmaceutical companies. Revista Organizações em Contexto, v. 17, n. 34, p. 329-360, 2021.
APA Citation:
Bronzeri, B. B., Garcia, F. G., & Tambosi Filho, E. (2021). The impact of in research, development and innovation on value generation of pharmaceutical companies. Revista Organizações em Contexto, 17(34), 329-360.
DOI:
https://doi.org/10.15603/1982-8756/roc.v17n34p329-360
Permalink:
https://www.spell.org.br/documentos/ver/66308/the-impact-of-in-research--development-and-innovation-on-value-generation-of-pharmaceutical-companies/i/en
Document type:
Artigo
Language:
Inglês
References:
AGUIAR, A. B. et al. Análise Dos Direcionadores De Valor Em Empresas Brasileiras. Revista de Administração Mackenzie, v. 12, n. 2, p. 90–112, 2011.

ALMEIDA, L. et al . Comparative analysis between EVA® and traditional financial (accounting) indicators in Brazilian civil construction companies: a documentary study. Gest. Prod., São Carlos, v. 23, n. 4, p. 733-756, Dec. 2016 .

ARTRIL, P., Myopic Management, dez. 2015. Disponível em: . Acesso em: 20 fev. 2018

AUSTIN, L., “Benchmarking to economic value added: The case of Airways Corporation of New Zealand Limited”, Benchmarking: An International Journal, Vol. 12 No. 2, pp. 138-150, 2005

BATISTA, A. Regressão Logística, uma introdução ao modelo estatístico exemplo de aplicação ao Revolving Credit – 1st ed, Vida Econômica Editorial, 2015, p. 26.

BERNDT, E. R.; DUBOIS, P. Impacts of Patent Expiry on Daily Cost of Pharmaceutical Treatments in Eight OECD Countries, 2004–2010. International Journal of the Economics of Business, [s. l.], v. 23, n. 2, p. 125–147, 2016.

BLOCK, J. H. R&D investments in family and founder firms: An agency perspective. Journal of Business Venturing, [s. l.], v. 27, n. 2, p. 248–265, 2012.

BREALEY, R; MYERS, S; ALLEN, F.. Principles of Corporate Finance – 12th ed, McGraw-Hill Irwin, 2016, p. 9-13.

BREWER, P. C.; CHANDRA, G. Economic Value Added (EVA): Its Uses and Limitations. SAM Advanced Management Journal (07497075), [s. l.], v. 64, n. 2, p. 4, 1999

BTG, P. Ebitda: o que é, para que serve e como calcular? 2019. Disponível em: . Acesso em: 11 abr. 2020

BUONANSEGNA, E., SALOMO, S., MAIER, A. M., L I-YING, J. Pharmaceutical new product development: why do clinical trials fail?. R&D Management, 44(2), p. 189-202, 2014.

CAMERON, A. TRIVEDI, P. Microeconometrics: methods and applications. Cambridge university press, 2005

CHANG, L.; XUEMENG, G.; ZHUOJUN, W. R&D Expenses and Operating Performance in Pharmaceutical Industry. 2018 International Conference on Humanities Education and Social Sciences (ICHESS 2018), p. 525–530, 2018.

CONTI, R.; BERNDT, E. Specialty drug prices and utilization after loss of U.S. patent exclusivity, 2001-2007. National Bureau of Economic Research, 2014.

CRESWELL, J.W. Projeto de Pesquisa: Métodos Qualitativos, Quantitativo e Misto. Porto Alegre: Editora Artmed, 2007.

CUNHA, M.; MARTINS, E.; ASSAF NETO, A.. Avaliação de empresas no Brasil pelo fluxo de caixa descontado: evidências empíricas sob o ponto de vista dos direcionadores de valor nas ofertas públicas de aquisição de ações. Rev. Adm. (São Paulo), São Paulo, v. 49, n. 2, p. 251-266, 2014.

CVM: Instrução CVM Nº 527, de 04 de outubro de 2012. 2012. Disponível em: . Acesso em: 11 abr. 2020

DELOITTE. Measuring the Return from Pharmaceutical Innovation 2018. Unlocking R&D Productivity. Disponível em <:https://www2.deloitte.com/uk/en/pages/life-sciences-and-healthcare/articles/measuring-return-from-pharmaceutical-innovation.html> Acesso em 03 abril 2019.

DIMASI, J. A., FELDMAN, L., SECKLER, A., & WILSON, A. Trends in risks associated with new drug development: success rates for investigational drugs. Clinical Pharmacology & Therapeutics, 87(3), p. 272-277, 2010.

DIMASI, J. A. Risks in new drug development: approval success rates for investigational drugs. Clinical Pharmacology & Therapeutics, 69(5), p. 297-307, 2001

DIMASI, J., GRABOWSKI, H., & HANSEN, R. (2016). Innovation in the pharmaceutical industry: new estimates of R&D costs. Journal of health economics, 47, p. 20-33, 2016.

FERGUSON, R.; RENTZLER, J.; YU, S. Does Economic Value Added (EVA) Improve Stock Performance Profitability? Journal of Applied Finance, [s. l.], v. 15, n. 2, p. 101–113, 2005

FEYZRAKHMANOVA, M; GURDGIEV, C. Patents and R&D expenditure effects on equity returns in pharmaceutical industry. APPLIED ECONOMICS LETTERS,.Dublin, v. 23, p. 278-283, 2016.

FLEMING, G.; HEANEY, R.; MCCOSKER, R. Agency costs and ownership structure in Australia. Pacific-Basin Finance Journal, [s. l.], v. 13, n. 1, p. 29–52, 2005.

GRAHAM, F., Humphreys, I. and Austin, L., “Benchmarking to economic value added: The case of Airways Corporation of New Zealand Limited”, Benchmarking: An International Journal, Vol. 12 No. 2, pp. 138-150, 2005

GUERMAT, C.; MISIRLIOGLU, I. U.; AL-OMUSH, A. M. The long-term effect of economic value added adoption on the firm’s business decision. Accounting Research Journal, [s. l.], v. 32, n. 3, p. 496–513, 2019.

GUIA INTERFARMA 2019. Disponível em: < https://www.interfarma.org.br/guia/guia-2019/> Acesso em: 09 novembro 2019.

GUJARATI, D., PORTER, D. Econometria Básica, Amgh Editora – 5th ed, Amgh Editora, 2011, p. 9-13.

HENRY, G. GRABOWSKI; WANG, R. The Quantity And Quality Of Worldwide New Drug Introductions, 1982–2003. Heath Tracking, março/abril, p. 452-460, 2006.

HOANG, L.; TUAN, T; NHA, P. LONG, T.; PHOUNG, T. Impact of Agency Costs on Firm Performance Evidence from Vietnam. Organizational and Markets in Emerging Economies. 2019, vol 10, p. 294-309

HOSMER, D. & LEMESHOW, S. Applied Logistic Regression. Wiley series in probability and mathematical statistics. New York. Jonh Wiley & Sons. 1989.

INDUSTRIAL R&D--Life Science. R&D Magazine, [s. l.], v. 53, n. 7, p. 46–47, 2011.

JANSEN, C.; MECKILNG. Theory of the firm: Managerial Behaviour, Agency Costs and Ownership Structure Journal of Financial Economics. New York, 1976, p. 305-360

KIM, J.-B.; LI, Y.; ZHANG, L. CFOs versus CEOs: Equity incentives and crashes. Journal of Financial Economics, [s. l.], v. 101, n. 3, p. 713–730, 2011

KOR, Y. Y. Direct and interaction effects of top management team and board compositions on R&D investment strategy. Strategic Management Journal (John Wiley & Sons, Inc.), [s. l.], v. 27, n. 11, p. 1081–1099, 2006.

MADURA, J. International Financial Management, 13th ed., Cengage Learning, 2016, p. 3-4

MAUBOUSSIN, M. J.; CALLAHAN, D. Capital Allocation: Evidence, Analytical Methods, and Assessment Guidance. Journal of Applied Corporate Finance, [s. l.], v. 26, n. 4, p. 48–74, 2014.

MAUBOUSSIN, M. J. What Does an EV/EBITDA Multiple Mean? 2018. Disponível em: . Acesso em: 11 abr. 2020

MCKELLAR, M. R. et al. The Value of Patent Expiration. Forum for Health Economics & Policy, [s. l.], v. 15, n. 2, p. 1, 2012.

MCKNIGHT, P. J.; WEIR, C. Agency costs, corporate governance mechanisms and ownership structure in large UK publicly quoted companies: A panel data analysis. Quarterly Review of Economics & Finance, [s. l.], v. 49, n. 2, p. 139–158, 2009.

MERCER, Z. C. EBITDA Single-Period Income Capitalization for Business Valuation. Business Valuation Review, 35(3), 86-102, 2016

MERCHANT, K. A & VAN DER STEDE, W. A. Management control systems. 3rd ed. Prentice Hall, 2012.

MESSIER, F.; GLOVER, Steven M.; Prawitt, Douglas F. Auditing & Assurance Services – A systematic approach. 8th edition, New York: McGraw-Hill/Irwin, 2012, p.6

MISTRY, D., SINGH , S., & SINGH , S. A Study of Shareholder’s Value and Financial Variablesof Indian Pharma Industry: An Empirical Analysis’. Gurukul Business Review, 3, 56-63, 2013

PAMMOLLI, F., MAGAZZINI, L., & RICCABONI, M. The productivity crisis in pharmaceutical R&D. Nature reviews Drug discovery, 10(6), 428-438, 2011.

PAMMOLLI, F., RIGHETTO, L., ABRIGNANI, S., PANI, L., PELICCI, P. G., & RABOSIO, E. The endless frontier? The recent increase of R&D productivity in pharmaceuticals. Journal of translational medicine, 18, 1-14, 2020.

PEREZ, M. Métricas de retorno e a geração de valor ao acionista. UNISANTA Law and Social Science – p. 189 202; Vol. 4, nº 2, 2015.

PHARMA, E. Evaluate Pharma World Preview 2013 Outlook to 2018. (2013). Disponível em: . Acesso em: 09 novembro 2019

PHARMA, E. Evaluate Pharma World Preview 2014 Outlook to 2020. (2014). Disponível em: . Acesso em: 18 fevereiro 2020

PHARMA, E. Evaluate Pharma World Preview 2016 Outlook to 2022. (2016). Disponível em: . Acesso em: 18 fevereiro 2020

PHARMA, E. Evaluate Pharma World Preview 2017 Outlook to 2022. (2017). Disponível em: . Acesso em: 09 novembro 2019

PHARMA, E. Evaluate Pharma World Preview 2018 Outlook to 2024. (2018). Disponível em: . Acesso em: 09 novembro 2019

PHARMA, E. Evaluate Pharma World Preview 2019 Outlook to 2024. (2019). Disponível em: . Acesso em: 09 novembro 2019

PHRMA, R. Medicines in Development for COPD 2012 Report, Disponível em: Acesso em: 23 abril 2020

PINTO, J. E.; ROBINSON, T. R.; STOWE, J. D. Equity valuation: A survey of professional practice. Review of Financial Economics, [s. l.], v. 37, n. 2, p. 219–233, 2019

QI, B. et al. Does internal control over financial reporting really alleviate agency conflicts? Accounting & Finance, dez. 2017. v. 57, n. 4, p. 1101–1125.

RAMOS, A; ZILBER, S. Efeitos da inovação no desempenho das firmas brasileiras: Rentabilidade, Lucro, Geração de Valor ou Percepção do Mercado? Revista de Administração da UNIMEP. v.14, n.3, p.165-193, 2016.

ROCHA, A. F. R.; SANTOS, I. C. D.; VIEIRA, A. M. Semi-open Innovation: an Approach to the Innovation Typology. Future Studies Research Journal, v. 10, n. 1, p. 55-81, 2018.

SALTER, S., How Short-Termism Invites Corruption…And What to Do About it. April, 2012. Harvard Business School Research Paper No. 12-094.

SANTOS,J.; GÓIS, A.; REBOUÇAS, S.; FILHO, J. O Impacto do Investimento na Capacidade Inovadora da Empresa. Revista de Administração e Inovação, São Paulo, v.12, n.1, p.303-325, jan./mar. 2015

SCANNELL, J. et al. Global Pharma: R&D Productivity Follows Moore’s Law Backwards; Does Anyone Know Why? Bernstein Black Book The Long View: Pan-European Perspectives (2011 Edition), [s. l.], p. 89–95, 2011.

SEN, P. K. E SINGER, J. M. Large Sample Methods in Statistics: An Introduciton with Applications. Chapman and Hall, London, 1993.

SHAIKH, I. A.; PETERS, L. The value of board monitoring in promoting R&D: a test of agency-theory in the US context. Journal of Management & Governance, [s. l.], v. 22, n. 2, p. 339–363, 2018

SHARMA, A K., KUMAR, S.. “Economic value added (EVA)-literature review and relevant issues.” International journal of economics and finance 2.2 (2010): 200-220.

SILVA, G. L. Modelos Logísticos para Dados Binários. Dissertação de Mestrado, IME-USP, 1992.

SILVA, R.; SEIBERT, R. Governança Corporativa – História e Tendências. Revista Interdisciplinar Científica Aplicada, Blumenau, v.9, n.3, p.76-101, TRIII 2015. ISSN 1980-7031.

STEWART, B. EVA, not EBITDA: A New Financial Paradigm for Private Equity Firms. Journal of Applied Corporate Finance, [s. l.], v. 31, n. 3, p. 103–115, 2019. DOI 10.1111/jacf.12365.

STUMPP, P. M., et al. “Putting EBITDA in perspective: ten critical failings of EBITDA as the principal determinant of cash flow.” Published in Moody’s Investor Service Global Credit Research (2000).

SUCH, D C et al. Effect of multiple-source entry on price competition after patent expiration in the pharmaceutical industry. Health services research, vol. 35, n2 , p. 529-47, 2000.

TRIPATHI, V. Agency Theory, Ownership Structure and Capital Structure: An Empirical Investigation in the Indian Automobile Industry. Asia-Pacific Management Accounting Journal, India, 2019, Volume 14

VANDOROS, S.; KANAVOS, P. The generics paradox revisited: empirical evidence from regulated markets. Applied Economics, [s. l.], v. 45, n. 22, p. 3230–3239, 2013.

WIRAWAN, D. I. Effects of EVA (economic value added), EVA spread, EVA momentum and return on assets on stock return: empirical study in Indonesian stock market (Doctoral dissertation, Master Thesis, Gadjah Mada University, Indonesia), 2011

WONG, C. H., SIAH, K. W., & L O, A. W. Estimation of clinical trial success rates and related parameters. Biostatistics, 20(2), p. 273-286, 2019.